JULY 29//QUITE A DAY: GOLD REVERSES A RAID ORCHESTRATED BY THE BANKERS TO POST A GAIN OF $12.45 TO $1961.30//SILVER ALSO GAINS 7 CENTS TO $24.25// A MONSTROUS GAIN IN TONNAGE AT THE GOLD COMEX: NOW STANDS AT AROUND 30 TONNES//HUGE INCREASE IN GOLD TONNAGE AT THE GLD: 8.47 TONNES //TOTAL INVENTORY: 1243.12//CORONAVIRUS UPDATE USA AND THE GLOBE//CHINA VS USA//TRUMP TO MOVE 12,000 TROOPS FROM GERMANY//SWAMP STORIES FOR YOU TONIGHT///.

GOLD:$:  1961.30  UP $12.45  The quote is London spot price (cash market)

This is an all time high!!

 

 

 

 

Silver:$24.24// UP 7 CENTS  London spot price ( cash market)

 

Options expiry on the big London LBMA/OTC is scheduled for July 31. at exactly 10 am est// 3pm London time

The bankers will do everything in their power to keep gold/silver from rising.  They are hurt very badly as huge number of options are now in the money

stay tune…

Closing access prices:  London spot

i)Gold : $1968.50  LONDON SPOT  4:30 pm

 

ii)SILVER:  $24.22//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

AUGUST GOLD:   1953.90  CLOSE  1::30 PM  SPREAD SPOT/FUTURE AUG  (BACKWARD  $7,40)

OCT GOLD:  $1965.70  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE OCT /: $4.40  ($ NORMAL CONTANGO)

DEC. GOLD  $1975.70   CLOSE 1.30 PM      SPREAD SPOT/FUTURE DEC   $14.40   ($2.40 ABOVE NORMAL CONTANGO)  OR .03% ABOVE CONTANGO OR EXCESS CONTANGO)

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $24.38…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  14 CENTS  PER OZ  (8 CENTS ABOVE CONTANGO)

SILVER DECEMBER  CLOSE:     $24.64  1:30  PM SPREAD SPOT/FUTURE DEC.       : 40  CENTS PER OZ  ( 28 CENTS ABOVE NORMAL CONTANGO)

 

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COMEX DATA

 

 

JPMorgan has been receiving gold with reckless abandon and sometimes supplying (stopping)

receiving today: 498/825

issued 15

EXCHANGE: COMEX
CONTRACT: JULY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,944.700000000 USD
INTENT DATE: 07/28/2020 DELIVERY DATE: 07/30/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
159 C ED&F MAN CAP 48
363 H WELLS FARGO SEC 300
657 C MORGAN STANLEY 43
657 H MORGAN STANLEY 326
661 C JP MORGAN 15
661 H JP MORGAN 498
690 C ABN AMRO 389
800 C MAREX SPEC 1
905 C ADM 30
____________________________________________________________________________________________

TOTAL: 825 825
MONTH TO DATE: 9,606

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 825 NOTICE(S) FOR 82500 OZ  (2.566 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  9606 NOTICES FOR 960600 OZ  (29.878 TONNES)

 

 

SILVER

 

FOR JULY

 

 

459 NOTICE(S) FILED TODAY FOR 2,295,000  OZ/

total number of notices filed so far this month: 16,698 for 83.490 MILLION oz

 

BITCOIN MORNING QUOTE  $11,222  UP 312

 

BITCOIN AFTERNOON QUOTE.: $10,991 DOWN 39

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $12.45 AND NO PHYSICAL TO BE FOUND ANYWHERE:

WITH ALL REFINERS CLOSED//MEXICO ORDERING ALL MINES SHUT:   WHERE ARE THEY GETTING THE “PHYSICAL?

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/// A DEPOSIT OF 8.47 TONNES OF GOLD ADDED TO THE GLD//

 

 

 

GLD: 1,243.12 TONNES OF GOLD//

 

WITH SILVER UP 7 CENTS TODAY: AND WITH NO SILVER AROUND:

 

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV:

A MASSIVE DEPOSIT 5.984 MILLION OZ//

 

 

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 572.283  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A FELL BY A STRONG SIZED 2568 CONTRACTS FROM 186,588 DOWN  TO 184,020, AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE CONSIDERABLE SIZED LOSS IN  OI OCCURRED WITH OUR  $0.14 LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS PRIMARILY DUE TO HUGE  BANKER SHORT COVERING PLUS A STRONG EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A STRONG INCREASE  IN SILVER STANDING  AT THE COMEX FOR JULY.  WE HAD A TINY NET LOSS IN OUR TWO EXCHANGES OF 353 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 0  AND SEP 2215′ DEC:  0 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2215 CONTRACTS. WITH THE TRANSFER OF 2215 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24-48 HRS IN THE ISSUING OF EFP’S. THE 2215 EFP CONTRACTS TRANSLATES INTO 11.075 MILLION OZ  ACCOMPANYING:

1.THE 14 CENT LOSS IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR DELIVERY IN THE LAST 12 MONTHS:

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

85.325 MILLION OZ INITIALLY IN JULY.

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 14 CENTS ).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE SMALL GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A STRONG INCREASE IN STANDING OF SILVER OZ STANDING FOR JULY,  HUGE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A TINY  NET LOSS OF 353 CONTRACTS OR 1.765 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS

JULY

 

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY /FOR MONTH OF JULY:

25,070 CONTRACTS (FOR 20 TRADING DAY(S) TOTAL 25,070 CONTRACTS) OR 125.350 MILLION OZ: (AVERAGE PER DAY: 1254 CONTRACTS OR 6.2675 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY: 125.350 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 16.32% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)*  JUNE’S 345.43 MILLION OZ IS THE SECOND HIGHEST RECORDED ISSUANCE OF EFP’S AND IT FOLLOWED THE RECORD SET IN APRIL 2018 OF 385.75 MILLION OZ.

 

ACCUMULATION IN YEAR 2020 TO DATE SILVER EFP’S:          1,262.77 MILLION OZ.

JANUARY 2020 EFP TOTALS SO FAR: 181.61 MILLION OZ

FEB 2020 EFP’S TOTAL :  ……     259.600 MILLION OZ

MARCH EFP’S …..                     452.280 MILLION OZ  //TOTALS//AND A NEW RECORD FOR THE MONTH)

APRIL EFP                               95.355 MILLION OZ.  (EX. FOR PHYSICALS BECOMING A LOT LESS)

MAY EFP FINAL:                     77.27 MILLION OZ

JUNE EXP                              71.15 MILLION OZ.

JULY EXP                               125.350 MILLION OZ/ (EXCHANGE FOR PHYSICALS STARTING TO RISE EXPONENTIALLY AGAIN)

 

 

 

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2568, WITH A  14 CENT LOSS  IN SILVER PRICING AT THE COMEX ///TUESDAYTHE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 2215 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE LOST A VERY TINY SIZED OI CONTRACTS ON THE TWO EXCHANGES353 CONTRACTS (WITH OUR  $0.14 CENT LOSS IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 2215 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A CONSIDERABLE SIZED DECREASE OF 2568 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A $0.14 CENT LOSS IN PRICE OF SILVER/AND A CLOSING PRICE OF $24.17 // TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.9305 BILLION OZ TO BE EXACT or 132% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JULY  DELIVERY MONTH/ THEY FILED AT THE COMEX: 459 NOTICE(S) FOR 2,295,000  OZ OF SILVER.

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 244,196 CONTRACTS ON AUG 22.2018. AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.70//TODAY’S RECORD OF 244,705 IS SET WITH A PRICE OF: 18.91 (FEB 25/2020)

 

.

 

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ/ SEPT 43.030 MILLION OZ//OCT: 7.665 MILLION OZ//   NOV: 2.630 MILLION OZ//DEC:  20.970 MILLION OZ; JAN:  5.075 MILLION OZ.//FEB 1.480 MILLION OZ//MAR: 23.005 MILLION OZ/APRIL 4.660 MILLION OZ//MAY  45.220 MILLION OZ//JUNE: 2.205 MILLION OZ// JULY 85.325 million oz
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

AND YET, WITH THE EXTREMELY HIGH EFP ISSUANCE, WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT)

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A HUGE SIZED 12,093 CONTRACTS TO 598,629 AND FURTHER FROM  OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE HUGE SIZED LOSS OF COMEX OI OCCURRED DESPITE OUR STRONG RISE IN PRICE  OF $13.25 /// COMEX GOLD TRADING// TUESDAY// WE  HAD HUGE BANKER SHORT COVERING, ANOTHER HUGE SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX FOR JULY, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A STRONG EXCHANGE FOR  PHYSICAL ISSUANCE AND A HUGE GOLD SPREADER LIQUIDATION. THIS ALL HAPPENED WITH OUR STRONG GAIN IN PRICE OF $13.25 .

 

WE HAD A VOLUME OF 0    4 -GC CONTRACTS//OPEN INTEREST  58

 

WE LOST A SMALL SIZED 4225 CONTRACTS  (13.14 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUGE SIZED 7868 CONTRACTS:

CONTRACT .; AUG 6443 AND OCT: 400 DEC: 1025; FEB: 0  ALL OTHER MONTHS ZERO//TOTAL: 7868.  The NEW COMEX OI for the gold complex rests at 598,629. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EXCHANGE DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A SMALL SIZED DECREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 4225 CONTRACTS: 12,093 CONTRACTS DECREASED AT THE COMEX AND 7868 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS OF 4225 CONTRACTS OR 13.14 TONNES. TUESDAY, WE HAD A GAIN OF $13.25 IN GOLD TRADING……

AND WITH THAT LOSS IN  PRICE, WE HAD A SMALL SIZED LOSS IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 13.14 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $13.25).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS ALSO UNSUCCESSFUL  (SEE BELOW).

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A STRONG SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (7868) ACCOMPANYING THE HUGE SIZED LOSS IN COMEX OI  (12,093 OI): TOTAL LOSS IN THE TWO EXCHANGES:  4225 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)ANOTHER STRONG  INCREASE IN GOLD  STANDING AT THE GOLD COMEX FOR THE FRONT JULY MONTH,  3) ZERO LONG LIQUIDATION; 4) CONSIDERABLE COMEX OI LOSS AND .5) STRONG EXCHANGE FOR PHYSICAL ISSUANCE 6) CONTINUAL STRONG GOLD SPREADER LIQUIDATION... AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//TUESDAY//$13.25.

 

WE ARE BEGINNING TO WITNESS A LACK OF EXCHANGE FOR GOLD PHYSICALS UNDERWRITTEN DUE TO PREMIUMS STARTING TO REAPPEAR IN THE FUTURE PRICE OF GOLD VS LONDON SPOT. THE COST TO THE BANKERS IS JUST TOO GREAT TO ENGAGE IN THESE VEHICLES ONCE THIS OCCURS.

THE FACT THAT WE ARE CONTINUALLY SEEING A DROP IN COMEX OPEN INTEREST AND VOLUMES COUPLED WITH LESS EXCHANGE FOR PHYSICALS PROBABLY MEANS THAT OUR LONGS ARE ALREADY DEPARTING NEW YORK FOR THE NEW PHYSICAL PLATFORM AT LONDON’S LME.

 

SPREADING OPERATIONS/NOW SWITCHING TO GOLD

 

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO GOLD…..

SPREADING OPERATION FOR OUR NEWCOMERS:

 

FOR NEWCOMERS, HERE ARE THE DETAILS:

 

SPREADING LIQUIDATION HAS NOW COMMENCED IN GOLD  AS WE HEAD TOWARDS THE NEW ACTIVE FRONT MONTH OF AUGUST.

 

 

FOR THOSE OF YOU WHO ARE NEW, HERE IS THE MODUS OPERANDI OF THE SPREADERS AND THE CRIMINAL ELEMENT BEHIND IT:

 HERE IS A BRIEF SYNOPSIS OF HOW THE CROOKS FLEECE UNSUSPECTING LONGS IN THE SPREADING ENDEAVOUR;

 

THE SPREADING LIQUIDATION OPERATION IS NOW OVER FOR SILVER..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR GOLD.  THEY WILL ACCUMULATE CONSIDERABLE AMOUNT OF THE CONTRACTS AND THEN LIQUIDATE ONE WEEK PRIOR TO FIRST DAY NOTICE

 

MODUS OPERANDI OF THE CORRUPT BANKERS AS TO HOW THEY HANDLE THEIR SPREAD OPEN INTERESTS:

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX GOLD OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE NON  ACTIVE DELIVERY MONTH OF JULY HEADING TOWARDS THE ACTIVE DELIVERY MONTH OF AUGUST FOR GOLD:

 

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF JULY. BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN GOLD WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (AUGUST), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END  OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.”

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

JULY

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JULY : 95,364 CONTRACTS OR 9,536,400 oz OR 296.62 TONNES (20 TRADING DAY(S) AND THUS AVERAGING: 4768 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 20 TRADING DAY(S) IN  TONNES: 296.62 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2019, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES

THUS EFP TRANSFERS REPRESENTS 296.20/3550 x 100% TONNES =8.34% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS DISSIPATED THIS MONTHTHE COST TO THE BANKERS TO CARRY THESE CONTRACTS IN LONDON IS BECOMING TOO GREAT FOR THEM.

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   3247.65  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE                1,098.93  TONNES  (*AND A NEW ALL TIME RECORD ISSUANCE//22 DAYS)

APRIL TOTAL EFP. ISSUANCE:               243.45  TONNES  (EFP ISSUANCE BECOMING A LOT LESS)

MAY TOTAL EFP ISSUANCE:                     248.68 TONNES (EFP ISSUANCE STILL LOW// PREMIUM COST TO THE BANKERS IS HUGE..SO ISSUANCE IS LESS)

JUNE TOTAL EFP ISSUANCE:                     192.06 TONNES

JULY TOTAL EFP ISSUANCE;                       296.20 TONNES SO FAR..(EXCHANGE FOR PHYSICALS REVERSE COURSE AND ARE NOW INCREASING!)

 

 

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

First, here is an outline of what will be discussed tonight:

 

1.Today, we had the open interest at the comex, in SILVER, FELL BY A CONSIDERABLE SIZED 2568 CONTRACTS FROM 186,588 DOWN TO 184,020 AND CLOSER TO OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

THE CONSIDERABLE SIZED LOSS IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)   HUGE BANKER SHORT COVERING , 2) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A STRONG INCREASE STANDING AT THE SILVER COMEX FOR JULY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 2215 CONTRACTS

OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS  AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:

JULY: 0 CONTRACTS   AND SEPT: 2692 AND DEC. 200 AND  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2215 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI LOSS  OF 2568  CONTRACTS TO THE 2215 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A SMALL LOSS OF 353 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES  1,765 MILLION  OZ, OCCURRED WITH OUR 14 CENT LOSS IN PRICE///

 

BOTH THE SILVER COMEX AND THE GOLD COMEX ARE IN STRESS AS THE BANKERS SCOUR THE BOWELS OF THE EXCHANGE FOR METAL..THE EVIDENCE IS CLEAR: HUGE AMOUNTS OF PHYSICAL STANDING FOR BOTH  SILVER AND GOLD .

(report Harvey)

 

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 66.59 POINTS OR 2.06%  //Hang Sang CLOSED UP 110.38 POINTS OR 0.45%   /The Nikkei closed DOWN 260.27 POINTS OR 1.15%//Australia’s all ordinaires CLOSED DOWN .31%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0001 /Oil UP TO 41.49 dollars per barrel for WTI and 43.70 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 7.0001 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0049 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

COMEX DATA//AMOUNTS STANDING//VOLUME OF TRADING/INVENTORY MOVEMENTS

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A HUGE  SIZED 12,093 CONTRACTS TO 598,629 MOVING FURTHER FROM OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS CONSIDERABLE COMEX DECREASE OCCURRED DESPITE OUR  GAIN OF $13.25 IN GOLD PRICING /TUESDAY’S COMEX TRADING//). WE ALSO HAD A STRONG EFP ISSUANCE (7,868 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS  INCREASE IN STANDING AT THE GOLD COMEX//JULY DELIVERY MONTH (SEE BELOW) WITH CONTINUATION AND STRONG SPREADER LIQUIDATION , …  AS WE ENGINEERED A SMALL LOSS ON OUR TWO EXCHANGES OF 4225 CONTRACTS DESPITE GOLD’S  GAIN IN PRICE. NORMALLY WE HAVE LATELY  SEEN THE EXCHANGE FOR PHYSICALS ISSUED  TO BE SMALL.. AS IT JUST TOO COSTLY FOR THEM TO CONTINUE SERVICING THE COSTS OF SERIAL FORWARDS CIRCULATING IN LONDON.  NOT TODAY..THEY JUST HAVE NO CHOICE….FOR THE FIRST TIME IN THREE OR FOUR MONTHS FOR THE SECOND DAY IN A ROW WE HAVE A HUGE ISSUANCE OF THESE EXCHANGE FOR PHYSICALS.

 

 

(SEE BELOW)

 

 

WE  HAD 0    4 -GC VOLUME//open interest REMAINS AT 58

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED A STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 7868 EFP CONTRACTS WERE ISSUED:  AUG  6443 , OCT: 400  DEC 1025; FEB 00 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 7868 CONTRACTS.

YOU WILL FIND THAT WHEN WE HAVE A GOOD PREMIUM IN THE FUTURES/SPOT, THEN THE NUMBER OF EXCHANGE FOR PHYSICALS DECLINE IN NUMBERS.  THE COST IS JUST TOO MUCH FOR THEM TO ISSUE. TODAY THAT PREMIUM WAS SMALL AND THUS A LITTLE MORE THAN USUAL OF EXCHANGE FOR PHYSICALS WERE ISSUED.

 

ON A NET BASIS IN OPEN INTEREST WE LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 4225 TOTAL CONTRACTS IN THAT 7868 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE SIZED 12,093 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A GOOD AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR GOOD COMEX OI GAIN,  A STRONG INCREASE IN  GOLD TONNAGE STANDING FOR THE JULY DELIVERY (SEE CALCULATIONS BELOW)…  ZERO LONG LIQUIDATION, AND A STRONG  SPREADER LIQUIDATION……AND WITH ALL OF THE ABOVE WE HAD A GAIN IN COMEX PRICE OF 13.25 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $13.25).  AND, THEY WERE UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL LOSS ON THE TWO EXCHANGES REGISTERED A STRONG 13.13 TONNES.

 

 

NET LOSS ON THE TWO EXCHANGES :: 4225, CONTRACTS OR 422,500 OZ OR 13.14 TONNES.

 

COMMODITY LAW SUGGESTS THAT COMMODITY FUTURES OPEN INTEREST SHOULD APPROXIMATE 3% OF TOTAL PRODUCTION.  IN GOLD THE WORLD PRODUCES AROUND 3500 TONNES PER YEAR BUT ONLY 2200 TONNES ARE AVAILABLE FROM THE WEST (THUS EXCLUDING RUSSIA, CHINA ETC..WHO KEEP 100% OF THEIR PRODUCTION)

THUS IN GOLD WE HAVE THE FOLLOWING:  598,629 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 59.86 MILLION OZ/32,150 OZ PER TONNE =  1861 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1861/2200 OR 84.59% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 358,844 contracts// good volume//

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  647,392 contracts//  volume  huge //most of our traders have left for London

 

 

JULY 29 /2020

JULY GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
32,151.000 OZ
1000 KILOBARS
Deposits to the Dealer Inventory in oz 144,679.500 oz

Brinks

4500 kilobars

 

 

 

Deposits to the Customer Inventory, in oz  

190,215.034

OZ

BRINKS

HSBC

LOOMIS

MALCA

 

 

 

INCLUDES

2000

KILOBARS

1000 KILOBARS

&

1500 KILOBARS

No of oz served (contracts) today
825 notice(s)
 82500 OZ
(2.566 TONNES)
No of oz to be served (notices)
0 contracts
(NIL oz)
0 TONNES
Total monthly oz gold served (contracts) so far this month
9606 notices
960600 OZ
29.878 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 1 deposit into the dealer

i) Int the dealer Brinks:  144,679.500 oz

4500 KILOBARS

 

 

 

total deposit: 4500 KILOBARS oz

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 4 deposit into the customer account

 

 

i) Into HSBC:  32,150.000  oz

1000 kilobars

ii) into Brinks customer:  64,300.000 oz (2000 kilobars)

iii) Into Loomis:  48,225.000 oz (1500 kilobars)

iv) Into Malca:  109,774.734 oz

 

 

 

 

total deposit:  190,215.034 oz

 

 

we had 1 gold withdrawals from the customer account:

i) out of Malca: 32,151.000 oz (1000 kilobars)

 

total withdrawals;  32,151.000 oz

 

 

We had 6  kilobar transactions  +

 

ADJUSTMENTS: 1 //

 

customer to dealer//HSBC:  (eligible to registered)

81,985.05 oz adjusted out of th e customer and this lands into the dealer account

 

 

 

 

 

 

 

 

 

 

The front month of JULY registered a total of 825 oi contracts FOR a GAIN of 481 contracts. We had 342 notices served on TUESDAY so we GAINED ANOTHER HUGE 823 contracts or an additional 82,300 oz will stand for delivery as they refused to morph into London based forwards. Somebody was badly in need of some gold to put out fires elsewhere!

 

 

Next comes August and another strong delivery month and here the OI  FELL BY A LARGE 46,208  contracts DOWN to 94,536 contracts, as we continue our countdown to first day notice. We have 2 more reading days before first day notice.

 

August is contracting very slowly…and thus  we are going to have a whopper of a delivery month come July 31/2020..first day notice for the August contract month.

 

Sept saw another addition of 841 contracts to stand at 2804.  Oct GAINED 5375 contracts UP to 65,214. (The boys still prefer August)

 

We had 825 notices filed today for  82,500 oz

 

FOR THE JULY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 15 notices were issued from their client or customer account. The total of all issuance by all participants equates to 825 contract(s) of which 498 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 0 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the JULY /2020. contract month, we take the total number of notices filed so far for the month (9606) x 100 oz , to which we add the difference between the open interest for the front month of  JULY (825 CONTRACTS ) minus the number of notices served upon today (825 x 100 oz per contract) equals 960,600 OZ OR 29.878 TONNES) the number of ounces standing in this active month of JUNE

thus the INITIAL standings for gold for the JULY/2020 contract month:

No of notices filed so far (9606 x 100 oz + (825 OI) for the front month minus the number of notices served upon today (825) x 100 oz which equals 960,600 oz standing OR 29.878 TONNES in this  active delivery month. This is a HUGE record amount for gold standing for a JULY delivery month (a  non active delivery month).

We gained 823 contracts or an additional  82,300 oz will stand at the comex.

We are now witnessing an increase in queue jumping on a daily basis. Sooner or later they will be running out of metal to supply our longs.

 

 

NEW PLEDGED GOLD:  BRINKS

 

144,088.952 oz NOW PLEDGED  JAN 21.2020/HSBC  5.4807 TONNES

271,997.477 oz PLEDGED  JULY 9// 2020  JPMORGAN:  8.46 TONNES

42,548.308.00 PLEDGED  APRIL 3/2020: SCOTIA:            1.3234 tonnes

deleted Int. Delaware pledge July 7  (600 tonnes)

 

653,730.982 oz pledged June 12/2020 Brinks/july 2/july 21               20.333 tonnes

total pledged gold:  1,112,365.719 oz                                     34.59 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 392.48 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 29.878 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  13,730,767.735 oz or 427.08 tonnes
which  includes the following:
a) pledged gold held at HSBC   which cannot settled upon   144,088.952 oz x ( 4.4817 TONNES)//
b) pledged gold held at JPMorgan (SOME  DELETED JUNE 24 2020/SOME JULY 9; SOME JULY 22) which cannot be settled upon:  271,997,477, oz (or 8.46 tonnes)
total pledged gold:
c)  pledged gold at Scotia: 1.3234 tonnes or 42,548.308 oz which cannot be settled  (1.3234 tonnes)
d) pledged gold at Manfra:  DELETED  MAY 26.2020
e) pledged gold at int.Del.    DELETED:   JULY 7.2020
f) pledged gold at Brinks:  DELETED july 2 and july 21
g) pledged gold at Brinks: 653,730.982 oz added which cannot be settled:  20.333 tonnes
total weight of pledged:  1,112,365.719 oz or 34.59 tonnes
thus:
registered gold that can be used to settle upon:  12,618,402.0  (392.48 tonnes)
true registered gold  (total registered – pledged tonnes  12,618,402.0 (392.48 tonnes)
total eligible gold:  21,747,904.526 oz (676.45 tonnes)

total registered, pledged  and eligible (customer) gold;   35,478,672.261 oz 1103.53 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  976,66 tonnes

 

end

 

I have compiled  data with respect to registered (or dealer) gold taken on first day notice for each of the past 24 months

The data begins on first day notice for the May month taken on the last day of April 2018. and it continues to present day.  Thus 24 data entry points.

 

I then took, how many deliveries were recorded by the CME for each and every month.  I also included for reference the price of gold on first day notice.

 

The first graph is a logarithmic  graph and the second graph, linear.

You can see the huge explosion of registered gold at the comex along with deliveries.  Gold owners are very clear people.  They would know full well that

the gold at the comex is unallocated and that they would not be stupid enough to keep their gold at the comex especially in the registered category once deliveries are asked upon. If physical gold was present it would be have removed from the comex… It shows there is no gold at the comex.  They are just trading in sticky paper.

 

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

 

END

JULY 29/2020

And now for the wild silver comex results

 

 

JULY SILVER COMEX CONTRACT MONTH

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 1,214,087.343 oz
CNT
DELAWARE
Scotia

 

 

Deposits to the Dealer Inventory
942,767.700 oz
Brinks

 

Deposits to the Customer Inventory
1,047,302.100 oz
Brinks
Scotia
No of oz served today (contracts)
459
CONTRACT(S)
(2,295,000 OZ)
No of oz to be served (notices)
367 contracts
 1,835,000 oz)
Total monthly oz silver served (contracts)  16,698 contracts

83,490,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month
We had 1 deposit into the dealer:
i) Into the dealer Brinks:  942,767.700 oz

total dealer deposits: 942,767.700  oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 2 deposits into the customer account

into JPMorgan:   nil oz

 

 

 

ii) Into Brinks:  450,000.000 oz  ????

iii) Into Scotia: 597,302.100 oz

 

 

 

*** JPMorgan for most of 2017, 2018 and onward, has adding to its inventory almost every single day.

JPMorgan now has 163.098 million oz of  total silver inventory or 49.22% of all official comex silver. (163.677 million/332.531 million

 

total customer deposits today:  1,047,302.100    oz

we had 3 withdrawals:

 

 

i)Out of CNT:  604,971.85 oz

 

 

 

ii) Out of Delaware: 9783.003 oz

iii) Out of Scotia; 599,332.740 oz

 

 

 

 

total withdrawals; 1,214,087.393   oz

We had 1 adjustments

]out of CNT:  dealer to customer account

1,193,479.226 oz dealer to customer

 

 

total dealer silver: 131.235 million

total dealer + customer silver:  332.531 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of July has an open interest of  826 contracts, as we LOST 438 contracts.  We had 469 notices served on TUESDAY, so we GAINED 31 contracts or an additional 155,000 oz will stand in this active delivery month of July as they REFUSED TO  morph into a London based forwards.  It seems that we have little silver over on this side of the pond. We still have a huge amount of contracts still outstanding to be served upon in July.

 

 

 

The next month after July is the non active month of  August and here  sees its open interest ROSE by 80 contracts RISING  to 826

The big September contract month sees a LOSS of 4583 contracts down to 131,092.

 

The total number of notices filed today for the JULY 2020. contract month is represented by 459 contract(s) FOR 2,295,000, oz

 

To calculate the number of silver ounces that will stand for delivery in JULY we take the total number of notices filed for the month so far at 16,698 x 5,000 oz = 83,490,000 oz to which we add the difference between the open interest for the front month of JULY.(826) and the number of notices served upon today 459 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JULY/2019 contract month: 16,698 (notices served so far) x 5000 oz + OI for front month of JULY (826)- number of notices served upon today (459) x 5000 oz of silver standing for the JULY contract month.equals 85,325,000 oz.  (A WHOPPER )//ALL TIME RECORD FOR ONE DELIVERY MONTH (corrected totals from yesterday)

WE GAINED 31 CONTRACTS OR 155,000 OZ WILL STAND FOR DELIVERY. SILVER IS STILL VERY SCARCE ON THIS SIDE OF THE POND AND THE REASON FOR CONSIDERABLE MORPHING OVER TO LONDON.

 

 

 

TODAY’S ESTIMATED SILVER VOLUME : 105,660 CONTRACTS // volume huge/

 

 

FOR YESTERDAY: 271,863.,CONFIRMED VOLUME//volume huge++++++++/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 271,863 CONTRACTS EQUATES to 1,559 million  OZ 194% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION. THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.

The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42. The previous record was 224,540 contracts with the price at that time of $20.44

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  FALLS TO- 1.45% ((JULY 29/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.83% to NAV:   (JULY 29/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1.45%

(courtesy Sprott/GATA

3. SPROTT CEF .A   FUND (FORMERLY CENTRAL FUND OF CANADA):

NAV 19.91 TRADING 19.74///NEGATIVE 0.86

END

 

 

And now the Gold inventory at the GLD/

JULY 29//WITH GOLD UP  $12.45 TODAY, WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A HUGE DEPOSIT OF 8.47 TONNES/INVENTORY RESTS AT 1243.12 TONNES OZ

JULY 28///WITH GOLD UP $13.25 TODAY, WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A HUGE DEPOSIT OF 5.84 TONNES/INVENTORY RESTS AT 1234.65

JULY 27//WITH GOLD UP $35.30 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF XXX TONNES/INVENTORY RESTS AT 1228.81 TONNES

JULY 24/WITH GOLD UP $8.80 TODAY: WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.80 TONNES//INVENTORY RESTS AT 1228.81 TONNES

JULY 23/WITH GOLD UP $24.90 TODAY: WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 7.26 TONNES/INVENTORY RESTS AT 1225.01 TONNES

JULY 22/WITH GOLD UP $22.00 TODAY: WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/ A DEPOSIT OF 7.89 TONNES/INVENTORY RESTS AT 1219.75 TONNES

JULY 21//WITH GOLD UP $26.00 TODAY, WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.97 TONNES INTO THE GLD// INVENTORY RESTS AT 1211.86 TONNES

JULY 20/WITH GOLD UP $7.70 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1206.89 TONNES

JULY 17/WITH GOLD UP $7.70 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1206.89 TONNES

JULY 16/WITH GOLD DOWN $9.80 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD: INVENTORY RESTS AT 1206.89 TONNES

JULY 15//WITH GOLD UP $1.55 TODAY/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 2.96 TONNES INTO THE GLD///INVENTORY RESTS AT 1206.89 TONNES

JULY 14//WITH GOLD DOWN $1.65 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/A DEPOSIT OF 3.51 TONNES/INVENTORY RESTS AT 1203.97 TONNES

JULY 13//WITH GOLD UP $12.50 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 0.36 TONNES INTO THE GLD//INVENTORY RESTS AT 1200.46 TONNES

JULY 10/WITH GOLD DOWN $.50 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD//A STRANGE WITHDRAWAL  OF 1.75 TONNES FROM THE GLD//INVENTORY RESTS AT 1200.82 TONNES

JULY 9//WITH GOLD DOWN $11.75 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OX 3.21 TONNES INTO THE GLD//INVENTORY RESTS AT 1202.57 TONNES

JULY 8/WITH GOLD UP $13.75 TODAY; A BIG CHANGE IN GOLD INVENTORY AT THE GLD:A DEPOSIT OF 7.89 TONNES INTO THE GLD//INVENTORY RESTS AT 1199.36 TONNES

JULY 7/WITH GOLD UP $12.50 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1191.47 TONNES

JULY 6/WITH GOLD UP $6.50 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 9.36 TONNES INTO THE GLD//INVENTORY RESTS AT 1191.47 TONNES

JULY 2/WITH GOLD UP $7.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.21 TONNES INTO THE GLD////INVENTORY RESTS AT 1182.11 TONNES

JULY 1/WITH GOLD DOWN $12.90//NO CHANGES IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1178.90 TONNES

JUNE 30//WITH GOLD UP $16.50 TODAY: NO CHANGE  IN GOLD INVENTORY AT THE GLD///INVENTORY RESTS AT 1178.90 TONNES

JUNE 29/WITH GOLD UP $2.90 TODAY: A HUGE DEPOSIT OF 3.61 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1178.90 TONNES

JUNE 26/WITH GOLD UP $5.03 TODAY: VERY STRANGE: A PAPER WITHDRAWAL  OF 1.46 TONNES//INVENTORY RESTS AT 1175.39 TONNES

JUNE 25//WITH GOLD DOWN $3.30 TODAY//ANOTHER STRONG PAPER DEPOSIT OF 7.6 TONNES///INVENTORY RESTS AT 1176.85 TONNES

JUNE 24/WITH GOLD DOWN $1.50 TODAY;  A STRONG 3.21 TONNES ADDED TO THE GLD//INVENTORY RESTS AT 1169.25  TONNES

JUNE 23/WITH GOLD UP $25.50 TODAY/ANOTHER CRIMINAL PAPER DEPOSIT OF 6.73 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1166.04 TONNES

JUNE 22/WITH GOLD UP $14.00 A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 23.09 TONNES//INVENTORY RESTS AT 1159.31 TONNES

JUNE 19/WITH GOLD UP$16.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//; INVENTORY RESTS AT 1136.22 TONNES

JUNE 18//WITH GOLD DOWN $2.75 TODAY: NO CHANGES IN GOLD INVENTORY: INVENTORY RESTS AT 1136.22 TONNES

JUNE 17/WITH GOLD DOWN $1.05: NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1136.22 TONNES

JUNE 16//WITH GOLD UP $6.70 TODAY: NO CHANGES IN GOLD INVENTORY: /INVENTORY RESTS AT 1136.22 TONNES

JUNE 15/WITH GOLD DOWN ANOTHER $8.80 TODAY, NO CHANGES IN GOLD INVENTORY/INVENTORY RESTS AT 1136.22 TONNES

JUNE 12//WITH GOLD DOWN $1.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A DEPOSIT OF 1.17 TONNES AT THE GLD//INVENTORY RESTS AT 1136.22 TONNES

JUNE 11//WITH GOLD UP $16.80 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A DEPOSIT OF 6.55 TONNES AT THE GLD//INVENTORY RESTS AT 1135.05 TONNES

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Inventory rests tonight at

JULY 29/ GLD INVENTORY 1234.65 tonnes*

LAST;  869 TRADING DAYS:   +301.30 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 769 TRADING DAYS://+479.77  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JULY 29/WITH SILVER UP 7 CENTS TODAY, WE HAD A BIG CHANGE IN SILVER INVENTORY//A DEPOSIT OF 5.984 MILLION OZ//INVENTORY RESTS AT 572.283 MILLION OZ//

JULY 28  WITH SILVER DOWN 14 CENTS TODAY, WE HAD A BIG CHANGE IN SILVER INVENTORY: A DEPOSIT OF 7.52 MILLION OZ//INVENTORY RESTS AT 566.299 MILLION OZ//

JULY 27/WITH SILVER UP $2.67 TODAY, WE HAD NO CHANGES IN SILVER INVENTORY: A DEPOSIT OF XX MILLION OZ//INVENTORY RESTS AT 558.779 MILLION OZ//

JULY 24/WITH SILVER DOWN $0.12 TODAY: NO CHANGE IN SILVER INVENTORY//INVENTORY RESTS AT 558.779 MILLION OZ/

JULY 23/WITH SILVER UP $.04 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// A HUMONGOUS PAPER DEPOSIT OF 9.594 MILLION OZ//INVENTORY RESTS AT 558.779 MILLION OZ///

JULY 22/WITH SILVER UP $1.54 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A HUMONGOUS PAPER DEPOSIT OF 7.218 MILLION OZ//INVENTORY RESTS AT 549.185 MILLION OZ/

JULY 21/WITH SILVER UP $1.38 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A HUMONGOUS PAPER DEPOSIT OF 15.368 MILLION OZ////INVENTORY RESTS AT 541.967 MILLION OZ//

JULY 20/WITH SILVER UP 40 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV:  A MASSIVE PAPER DEPOSIT OF 3.819 MILLION OZ ‘ENTERED” THE SLV..INVENTORY RESTS AT 526.599 MILLION OZ/

JULY 17/WITH SILVER UP 15 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV/: A DEPOSIT OF 1.583 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 522.780 MILLION OZ//

JULY 16//WITH SILVER DOWN 14 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF  5.123 MILLION OZ//INVENTORY RESTS AT 521.197 MILLION OZ..

JULY 15.WITH SILVER  UP 21 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.956 MILLION OZ//INVENTORY RESTS AT 516.074 MILLION OZ//

JULY 14/WITH SILVER DOWN 21 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY REST AT 514.118 MILLION OZ//

JULY 13//WITH SILVER UP 67 CENTS TODAY: A HUGE CHANGE IN SILVER: A WITHDRAWAL OF 1.677 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 514.118 MILLION OZ//

JULY 10/WITH SILVER UP 7 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 4.844 MILLION OZ INTO THE SLV//INVENTORY RESTS AT  515.795 MILLION OZ

WHAT A FRAUD!!

JULY 9/WITH SILVER DOWN 8 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 8.198 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 510.951 MILLION OZ/

JULY 8/WITH SILVER UP 37 CENTS TODAY//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.118 MILLION OZ FROM THE SLV//VERY SURPRISING.//INVENTORY RESTS AT 502.753 MILLION OZ//

JULY 7/WITH SILVER UP 8 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV:/INVENTORY RESTS AT 503.871 MILLION OZ///

JULY 6//WITH SILVER UP 24 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.863 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 503.871 MILLION OZ

JULY 2/WITH SILVER UP 4 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//: A DEPOSIT OF 4.01 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 502.008 MILLION OZ

JULY 1/WITH SILVER DOWN 23 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A MASSIVE DEPOSIT OF 5.403 MILLION OZ//INVENTORY RESTS AT 498.007 MILLION OZ/

JUNE 30/WITH SILVER UP 39 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 492.604 MILLION OZ//

JUNE 29/WITH SILVER DOWN ONE CENT TODAY: A TWO CHANGES IN SILVER INVENTORY AT THE SLV: A SMALL WITHDRAWAL OF 466,000 OZ TO PAY FOR STORAGE FEES AND INSURANCE//// AND A LARGE DEPOSIT OF 1.212 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 492.604 MILLION OZ//

JUNE 26/WITH SILVER UP 6 CENTS TODAY: ANOTHER HUGE CHANGE IN SILVER INVENTORY AT THE SLV/ RESTS AT 491.858 MILLION OZ//

JUNE 25/WITH SILVER UP 12 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 931,000 OZ INTO THE SLV////INVENTORY RESTS AT 491.858 MILLION OZ//

JUNE 24///WITH SILVER DOWN 31 CENTS// NO CHANGE IN SILVER INVENTORY//INVENTORY RESTS AT 490.927 MILLION OZ

JUNE 23//WITH SILVER UP 16 CENTS TODAY: A MONSTROUS CHANGE IN INVENTORY: A PAPER DEPOSIT OF 4.473 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 490.927 MILLION OZ//

JUNE 22/WITH SILVER UP 15 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/: INVENTORY/INVENTORY RESTS AT 486/454 MILLION OZ//

JUNE 19//WITH SILVER UP 22 CENTS TODAY: STRANGE!!  A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 839,000 OZ FROM THE SLV////INVENTORY RESTS AT 486,454 MILLION OZ..

JUNE 18/WITH SILVER DOWN 16 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 932,000 OZ INTO THE SLV////INVENTORY RESTS AT 487.293 MILLION OZ

JUNE 17/WITH SILVER UP 8 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 3.261 MILLION OZ INTO THE SLV////INVENTORY REST AT 486.361 MILLION OZ

JUNE 16//WITH SILVER UP 20 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.118 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 483.100 MILLION OZ//

JUNE 15/WITH SILVER DOWN 14 CENTS NO CHANGES IN SILVER INVENTORY: //INVENTORY RESTS AT 481.982  MILLION OZ///

JUNE 12/WITH SILVER DOWN 30 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: TWO DEPOSITS OF 7.269 MILLION OZ AND 1.802 MILLION OZ ADDED TO THE SLV///INVENTORY RESTS THIS WEEKEND AT 481.982 MILLION OZ//

JUNE 11//WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY: ///INVENTORY RESTS AT 472.89 MILLION OZ//

 

JULY 29.2020:

SLV INVENTORY RESTS TONIGHT AT

566.299 MILLION OZ.

end

 

PHYSICAL GOLD/SILVER STORIES
i) GOLDCORE BLOG/Mark O’Byrne

Gold Reaches $2,000/oz Prior to Two “Concerted Attacks” In Futures Market

The King Report

“Anyone that’s been around the block a few times with gold knows that at some point ‘they’ will stage a concerted effort to drive gold lower.”

December gold hit $2,000 at 21:19 ET Monday. It then retreated and traded sideways until 22:50 ET. Then someone slammed gold down to $1,955 in 20 minutes. This is obvious “impact trading.” Gold then traded sideways for over four hours. (see red line above).

At 3:27 ET another attack on gold commenced. December gold finally bottomed at $1,927.50 at 3:51 ET.

Gold rebounded sharply after Goldman hiked its target price to $2,300.

The duo concerted attacks on gold suggest that someone with stature has transitioned from being alarmed about gold to being afraid of gold. …

Today the July gold contract expires, so gold could be volatile. Physical gold is in short supply, so entities that are short July gold better have the stuff. Perhaps this is why gold was attacked on Tuesday. …

[Warren] Buffett and many others have proclaimed that owning “good” common stocks is a far better inflation hedge than gold.

This is mostly true as long as the business is domiciled in a country that has a solid belief in the rule of law and justice as practiced by constitutional oversight.

However, gold is a far better and safer option in a banana republic or totalitarian regime. Common stocks owners, especially private equity, should be very, very alarmed at where the United States is heading.

From The King Report via GATA

NEWS and COMMENTARY

Gold’s Record Rally Fuelled by Unlikely Buyers – Bloomberg

Gold pauses as markets seek confirmation on Fed policy – Reuters

Currencies ease on virus worries ahead of Fed – Reuters

Chinese banks urged to switch away from SWIFT as U.S. sanctions loom – Reuters

It Is Time to Abandon Dollar Hegemony – Foreign Affairs

FT Asserts Gold Is Not a “Particularly Good Investment” Despite Returns Of Over 10% Per Annum In Last 20 Years (see table below) – FT via GATA

Goldman says gold will surge another 20% and hit $2,300 in the next year, driven by rock-bottom interest rates

GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

28-Jul-20 1931.65 1940.90, 1499.15 1501.48 & 1647.70 1654.23
27-Jul-20 1940.55 1936.65, 1511.30 1504.78 & 1659.56 1647.70
24-Jul-20 1893.85 1902.10, 1486.67 1490.30 & 1631.55 1638.09
23-Jul-20 1882.35 1878.30, 1480.28 1477.47 & 1624.47 1621.54
22-Jul-20 1851.00 1852.40, 1462.85 1456.91 & 1604.82 1598.44
21-Jul-20 1823.20 1842.55, 1436.86 1449.35 & 1594.21 1608.36
20-Jul-20 1810.30 1815.65, 1437.92 1438.18 & 1580.21 1590.87
17-Jul-20 1802.90 1807.35, 1435.47 1442.45 & 1578.98 1581.07
16-Jul-20 1804.60 1807.70, 1438.09 1436.04 & 1583.72 1581.56
15-Jul-20 1809.30 1804.60, 1436.22 1441.31 & 1582.96 1579.57
14-Jul-20 1798.20 1801.90, 1436.58 1440.62 & 1583.14 1581.71
13-Jul-20 1808.05 1807.50, 1435.23 1432.26 & 1598.32 1591.68
10-Jul-20 1805.75 1803.10, 1433.40 1427.33 & 1599.35 1594.84

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ii) Important gold commentaries courtesy of GATA/Chris Powell

A must read Financial Times article on gold as they sulk at gold’s rise to almost 2,000 dollars

(London’s Financial Times/GATA)

Gold’s sharp rise throws Financial Times into an erroneous sulk

 Section: 

10:14p ET Tuesday, July 29, 2020

Dear Friend of GATA and Gold:

Appended is tomorrow’s editorial in the Financial Times, which, taking note of gold’s sharp rise in price, begins with a factual error, goes on to sulk for six paragraphs, and concludes with the hope and expectation that gold will go back in the dumpster eventually.

The error beginning the editorial is the assertion that gold doesn’t pay interest. Gold doesn’t automatically pay interest like a bond because it doesn’t have to, since holding gold incurs no risk. An ounce of gold today will be an ounce of gold tomorrow, whatever happens in the world, even as many borrowers have failed and even currencies have failed as the regimes issuing them have collapsed.

Gold is money in itself and no one else’s liability. But gold can pay interest if its owner wants to lend it, just as fiat currency cash can pay interest and just as central banks themselves have charged interest in lending their gold to investment banks for hypothecation and price suppression.

The FT attributes gold’s rise to “uncertain times” — geopolitical tensions and the failure of the U.S. government to get the virus epidemic under control. The FT offers not a word about what is likely a bigger cause — the implosion of the fractional-reserve gold banking system built in part on the central bank gold leasing the FT also fails to acknowledge.

If the FT thinks the gold price is unpleasantly high now, what will the price be if the world ever realizes that most of the gold it thought it owned doesn’t exist and never did? If the world ever finds out, it may fairly ask why the FT never reported it, though documentation of central bank gold price suppression policy has been delivered to the newspaper many times over the last 20 years without prompting the newspaper to put a single critical question to any central bank.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

* * *

Gold’s Rise Is a Sign of Uncertain Times

From the Financial Times, London
Tuesday, July 28, 2020

https://www.ft.com/content/51db2a1f-6e94-4c5f-9ce0-507ebf41835c

Gold is not a particularly good investment. It yields no interest and pays no dividend. The only way its owners can earn a return is if other investors value the shiny metal more tomorrow than they did today. For a “haven” asset, which investors can use to preserve capital in times of crisis, it is remarkably speculative; aside from some niche industrial uses, most of the permanent demand comes from jewellery. Its rise in value this week to a near-record high of $2,000 per troy ounce reflects that many other options are even less attractive, rather than any intrinsic merits.

Many traditional “safe assets,” such as government bonds, similarly either yield nothing or will gradually lose their value thanks to inflation and negative interest rates. As with gold, earning a return on U.S. Treasuries relies on speculating that prices of the bonds can continue to increase. With interest rates already at virtually zero in the United States and little indication that the Fed intends to drop them into negative territory, that does not strike many as a good bet. In that situation, some investors see gold, which is less vulnerable to inflation, as more attractive.

The current rise in gold is also an indication of fear. What gold primarily offers investors is an alternative to the dollar. Adjusting for changes in overall prices, the metal has been more expensive only twice before: during 2011, when a congressional standoff over the U.S. debt ceiling and the potential for the eurozone to break up drove demand; and in the early 1980s, when a new Islamic revolutionary regime in Iran contributed to concerns that the partly oil-driven inflation of the 1970s would erode the value of the greenback. Gold’s rise today once again reflects worries over the safety of investing in the world’s largest economy.

The dollar has likewise lost value this week against the euro, the British pound, and the Japanese yen. Not only are geopolitical tensions with China rising — gold’s value also rose this year during a standoff between the US and Iran — but the U.S. government continues to mishandle the pandemic. A congressional stalemate over a second stimulus package has also prompted investors to look for alternatives to the international reserve currency.

The dollar’s premier status owes as much to the fact there are few good alternatives to the currency as to the greenback’s own advantages. The euro, the only currency with similar standing, lacks the liquidity and depth of the greenback — though the launch of mutual bonds to pay for the bloc’s post-coronavirus recovery fund may help to change that. For some, gold is also a means to bet against fiat currencies and unrestrained money printing in general.

This is the backdrop against which the Federal Reserve, currently in an interest-rate meeting that will end on Wednesday, will announce its latest decision. The members of its rate-setting committee should ignore the decline in the dollar, which, if anything, provides relief to U.S. exporters and a bit of extra monetary stimulus. There is little, however, they can do to help the American economy at the moment. Market trading is orderly and, until the virus is contained, even cheaper money — whether through negative interest rates or yield-curve control — will do little to boost growth.

Gold’s rise may be overdone. History suggests that it rarely maintains these sorts of levels, and the wave of fear over the future of the U.S. and world economy that propels it eventually breaks. For the moment those fears are grounded, but gold’s disadvantages may soon become clear again.

* * *

END

A good article on the dollar, its pros and cons

(Foreign Affairs/New York GATA/Tolford/Kundnani)

Foreign Affairs: It is time to abandon dollar hegemony

 Section: 

Issuing the World’s Reserve Currency Comes at Too High a Price

By Simon Tilford and Hans Kundnani
Foreign Affairs, New York
Tuesday, July 28, 2020

In the 1960s, French Finance Minister Valéry Giscard d’Estaing complained that the dominance of the U.S. dollar gave the United States an “exorbitant privilege” to borrow cheaply from the rest of the world and live beyond its means.

U.S. allies and adversaries alike have often echoed the gripe since. But the exorbitant privilege also entails exorbitant burdens that weigh on U.S. trade competitiveness and employment and that are likely to grow heavier and more destabilizing as the United States’ share of the global economy shrinks.

The benefits of dollar primacy accrue mainly to financial institutions and big businesses, but the costs are generally borne by workers. For this reason, continued dollar hegemony threatens to deepen inequality as well as political polarization in the United States.

Dollar hegemony isn’t foreordained. For years, analysts have warned that China and other powers might decide to abandon the dollar and diversify their currency reserves for economic or strategic reasons. To date, there is little reason to think that global demand for dollars is drying up.

But there is another way the United States could lose its status as issuer of the world’s dominant reserve currency: It could voluntarily abandon dollar hegemony because the domestic economic and political costs have grown too high. …

… For the remainder of the essay:

https://www.foreignaffairs.com/articles/americas/2020-07-28/it-time-aban…

end

The big question: where do people store all the new gold that they bought

New York Times/GATA

Where is all that gold being stored?

 Section: 

By Danielle Braff
The New York Times
Tuesday, July 28, 2020

We’re in the midst of a modern-day gold rush.

The precious metal has reached record high prices in recent days. A survey of 1,000 people by Magnify Money found that one out of six have invested in gold or other precious metals since May, and about half of Americans are seriously thinking about buying gold. (This after Gallup reported in April that Americans had cooled somewhat on stocks as a long-term investment.)

Whether these people are stocking up on gold because they’re worried about a pending apocalypse or simply convinced that it’s a fabulous investment, they do have one major issue: storage. Bars and coins are bulky. (And let’s not get started on jewelry, which can be complicated emotionally.)

With anxiety about the economy increasing — which tends to rise any time there’s political or world turmoil — the need for storage is growing, too, and options are expanding to meet it.

“Gold and silver bullion storage options have simply grown more in location diversity, pricing — with even some offering short-term collateral loan options,” said James Anderson, a research executive at SD Bullion in Toledo, Ohio. “When I began in this industry pre-2008 financial crisis, there were perhaps 10 to 20 domestic bullion storage depositories. Now, there are hundreds in the U.S.A. and abroad.”

… For the remainder of the report:

https://www.nytimes.com/2020/07/28/style/gold-storage.html

end

The Thai central bank has a somewhat link to gold/baht.  This has caused the baht to rise because citizens there believe that their baht is backed by gold. Now the government want to severe that link and lower the baht balue

Bloomberg./GATA

Thai central bank would push local gold trade out of baht and into dollars

 Section: 

Thailand’s Gold Plan May Curb Baht Without Incurring U.S. Anger

By Lilian Karunungan and Suttinee Yuvejwattana
Bloomberg News
Tuesday, July 28, 2020

The Bank of Thailand’s plan to sever the link between gold trading and the baht may be a way to limit the currency’s gains without incurring the wrath of the U.S. over foreign-exchange manipulation.

The Thai central bank says it’s in talks with market participants about converting local gold trading to U.S. dollars, including futures, to reduce the baht’s strength. Policy makers have long complained the appreciating currency threatens to damage the country’s exports.

The baht fell at the start of the Covid-19 outbreak but has since gathered strength amid the gold fervor. The surge in the precious metal has convinced many Thais to cut their holdings, forcing local shops to sell in the international market. The step of exchanging dollars into baht as part of the process has been one of the factors helping the Thai currency gain about 5% from its March low. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2020-07-28/thailand-s-gold-plan-…

end

Tuesday:  when gold touched 2,000 dollars on the futures, it triggered two attacks.

King Report

King Report: Gold’s touch of $2,000 triggers two attacks

 Section: 

By Bill King
The King Report
Burr Ridge, Illinois
Wednesday, July 29, 2020
http://thekingreport.com/

From Tuesday’s King Report: “Anyone that’s been around the block a few times with gold knows that at some point ‘they’ will stage a concerted effort to drive gold lower. …”

December gold hit $2,000 at 21:19 ET Monday. It then retreated and traded sideways until 22:50 ET. Then someone slammed gold down to %1,955 in 20 minutes. This is obvious “impact trading.” Gold then traded sideways for over four hours.

At 3:27 ET another attack on gold commenced. December gold finally bottomed at $1,927.50 at 3:51 ET. Gold rebounded sharply after Goldman hiked its target price to $2,300.

…The duo concerted attacks on gold suggest that someone with stature has transitioned from being alarmed about gold to being afraid of gold. …

Today the July gold contract expires, so gold could be volatile. Physical gold is in short supply, so entities that are short July gold better have the stuff. Perhaps this is why gold was attacked on Tuesday. …

[Warren] Buffett and many others have proclaimed that owning “good” common stocks is a far better inflation hedge than gold. This is mostly true as long as the business is domiciled in a country that has a solid belief in the rule of law and justice as practiced by constitutional oversight. However, gold is a far better and safer option in a banana republic or totalitarian regime. Common stocks owners, especially private equity, should be very, very alarmed at where the United States is heading.

end

iii) Other physical stories:

Peter Schiff on gold:

Peter Schiff: The Fed Doesn’t Have Another Rabbit In Its Hat

Via SchiffGold.com,

Gold has rallied above its previous all-time record high this week. But can it sustain this bull run? Peter Schiff thinks it can and will.

It’s not about the coronavirus, as many mainstream analysts seem to think. It’s the government and central bank response to the pandemic — the borrowing, the spending, and the money printing. Peter believes that ultimately the Fed’s monetary policy is going to collapse the dollar and it will lose its reserve status. In this podcast, he talked about what this portends. He also explained why he doesn’t think the Fed can kick the can down the road again.

Peter has been talking about a looming dollar collapse for years. He admits he was wrong on the timing. He thought it would happen a lot sooner than this. But he doesn’t think he is wrong now just because he was wrong back then.

The problems are so much bigger now than they were a decade ago, and therefore, I think our ability to kick the can down the road again, I think is gone. I mean, yes, I underestimated that ability before, but at this point, it’s impossible. And so I don’t really see how the US government, the Federal Reserve, is going to stop gold from going up.”

Looking back, gold’s first major rally was in the 1970s when the price went from around $35 to over $800. At the time, Fed Chair Paul Volker’s willingness to get out of the way and allow interest rates to rise sharply to wherever the market was going to take them stopped that rally and kicked off a 20-year bear market in gold. “The Fed did what it took,” Peter said. “They did the right thing.”

The second gold rally started after the dot-com bubble popped and ended after gold set its previous record high just over $1,900 back in 2011. What stopped that? What caused gold to pull back from $1,900?

Somehow, they were able to convince the world and everybody who was worried that QE would end in disaster and that zero percent interest rates would be a failure – the Fed was able to convince everybody that the programs worked, and because they worked, they were temporary and would be ended, and that the Fed was going to start normalizing interest rates and shrink the balance sheet back down to pre-2008 crisis levels. And the market actually believed it.”

In effect, the Fed never had to raise rates to stop the gold rally. It just had to convince the world that it would raise rates.

Of course, the Fed never did normalize because it couldn’t normalize. When the central bank finally tried to slowly notch rates up, it broke the stock market in the fall of 2018. That led to the “Powell Pause” followed by three rate cuts in 2019 and the launch of a quantitative easing program that the Fed refused to call quantitative easing.

The other thing that kept the dollar propped up was the rest of the world slashing interest rates and running their own quantitative easing programs. The dollar got a lot of help from bad monetary policy abroad that made US policy look not as bad in comparison. As Peter put it, “We were the cleanest dirty shirt in the hamper.”

I think the hat’s empty. There are no more rabbits in there.”

Peter said that the Fed can’t raise rates like it did in 1980. The country can’t afford it. There is too much debt. There isn’t enough savings. And the Fed can’t pretend it’s going to raise rates like it did in 2008. Nobody will believe it.

So what are they going to do? Nothing. There is nothing they can do. Now, is there something that I haven’t thought of? I don’t know. Maybe. But obviously, since I can’t think of it, I can’t discuss it. So, is it possible that there’s a rabbit in there that I can’t see? Maybe. And so that’s why we’re not going to go all in. Because you don’t know what you don’t know. So, it is possible that there is a way to kick this can down the road again. I just can’t see it. But the bottom line is we don’t have to go all in. There is so much opportunity in the foreign markets, in the emerging markets, that just having an allocation in gold and gold stocks is all you need.”

Peter went on to talk about the mainstream talking points about this gold rally and the fact that people are actually starting to talk about the dollar losing its reserve status

end

Agnico Eagle EPS beats by $0.01, beats on revenue

|About: Agnico Eagle Mines Limited (AEM)|By: , SA News Editor

Agnico Eagle (NYSE:AEM): Q2 Non-GAAP EPS of $0.18 beats by $0.01; GAAP EPS of $0.43 beats by $0.28.

Revenue of $557.18M (+5.8% Y/Y) beats by $11.36M.

Gold production for the quarter was down ~20% to 74,317 ounces, as a result of the suspension of operations in April.

Raised Gold production guidance for 2020 to 1.68-1.73M ounces (versus previous guidance of 1.63-1.73M ounces).

Press Release

end

Due to the criminal conviction of trader Edmonds, the USA prosecution is seeking to halt the civil lawsuit. I was misinformed: all discoveries in a civil suit are public and because of that, the prosecution gives the defendants the right to plead the 5th if their testimony incriminates them
(courtesy zerohedge/Chris Powell)

US seeks halt in civil lawsuit accusing JP Morgan of manipulating metals market, citing criminal case

  • The U.S. wants a federal judge to halt a civil lawsuit accusing J. P. Morgan of manipulating precious metals markets. The Justice Department cited an ongoing criminal case as its reason for the request.
  • A former J. P. Morgan trader pleaded guilty in Connecticut last month to manipulation charges.
  • In the guilty plea, the trader said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors.

A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

Amr Alfiky | Reuters
A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

The Justice Department is asking a judge to put the brakes on a civil lawsuit against J. P. Morgan Chase, citing an ongoing probe into a “related criminal case” that involves alleged manipulation of precious metals markets.

The department wants a six-month postponement in the proceedings of the civil lawsuit, which was filed in 2015 by hedge fund manager Daniel Shak and two commodity traders. The government also says it could ask for a longer delay in the case, according to a court filing on Monday.

The move comes days after Shak’s lawyer, David Kovel, sought permission to reopen questioning of two former J. P. Morgan traders and the bank’s current global head of base and precious metals trading.

Kovel, in making the request with the Manhattan federal judge in the civil case, cited last month’s guilty plea by one of those former traders, John Edmonds, in federal court in Connecticut.

Edmonds admitted making bogus bids on precious metals contracts while working at the bank from 2009 to 2015.

Neither J. P. Morgan Chase nor Kovel’s clients have opposed the Justice Department’s request.

In arguing for a delay, the Justice Department said Shak’s lawsuit is “related” to Edmonds’ criminal case and that Edmonds has “pleaded guilty and acknowledged his own participation in such conduct, as well as that of other traders.”

“Edmonds awaits sentencing, but the broader investigation is ongoing,” the Justice Department said. The U.S. wants to delay the civil case “to protect the integrity of its ongoing criminal investigation,” it said.

J. P. Morgan did not respond to a request for comment by CNBC. Kovel declined to comment.

Tuesday night, after this story first was published, Judge Paul Engelmayer ordered the federal prosecutors to explain in detail by Monday why postponing proceedings in the civil lawsuit would not harm those involved, and why reopening questioning “would be detrimental to the Government’s ongoing criminal investigation.”

Englemayer also wrote that he regards Edmonds’ guilty plea “as potentially highly consequential” to the civil case.

In his guilty plea, the 36-year-old Edmonds said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors. He admitted to working with “unnamed co-conspirators” at J. P. Morgan, according to the Justice Department.

Kovel wants to question Edmonds again as well as Michael Nowak, the bank’s global head of base and precious metal trading, and former J. P. Morgan Chase Managing Director Robert Gottlieb. The three had previously answered questions under oath in the civil case.

Kovel said in court filings that Nowak was the immediate supervisor of Edmonds, while Gottlieb was Edmonds’ mentor.

In his prior deposition, Edmonds said that Gottlieb sat only a “couple feet” away from him for about five years, and that he was “somebody [he] looked up to in the business,” who helped guide and train him.

Nowak is described by Edmonds as his direct supervisor, with whom he would sometimes discuss trading strategies. Nowak was also the person responsible for overseeing the performance and risk of Edmonds’ portfolio, according to the deposition.

Edmonds also stated in his prior deposition that he would enter precious metals trades for both Nowak and Gottlieb, among others.

The civil lawsuit claims Shak and his fellow plaintiffs lost tens of millions of dollars as a result of actions by J. P. Morgan’s traders.

A federal judge tells traders that they can combine cases (with the other 6 banks) as they accused JPMorgan of rigging the precious metals market
(courtesy CNBC)

Federal judge tells traders they can combine cases accusing JP Morgan of rigging metals market

  • Litigation in a separate civil case has been put on hold until at least May at the behest of the Justice Department, which is investigating a “related criminal case” that involves alleged market manipulation by precious metals traders at J. P. Morgan.
  • Judge John Koeltl of the Southern District of New York appointed the White Plains, N.Y., law firm Lowey Dannenberg as interim lead counsel for the proposed class action.

71671201

Spencer Platt | Getty Images

A group of traders from across the U.S. who allege that J. P. Morgan Chase manipulated precious metals markets for years are one step closer to bringing a class action suit against the nation’s largest bank.

Earlier this month, a federal judge said five separate lawsuits making similar allegations against the bank could be combined, potentially including thousands of people who traded in the precious metals market from Jan. 2009 through Dec. 2015.

Litigation in a separate civil case has been put on hold until at least May at the behest of the Justice Department, which is investigating a “related criminal case” that involves alleged market manipulation by precious metals traders at J. P. Morgan.

J. P. Morgan declined to comment on this story.

Judge John Koeltl of the Southern District of New York appointed the White Plains, N.Y., law firm Lowey Dannenberg as interim lead counsel for the proposed class action.

Vincent Briganti, a partner at the firm, filed the first suit seeking class action status in November on behalf of Dominick Cognata, a trader who alleges he suffered losses due to J.P. Morgan’s illegal trading conduct in the silver and gold futures and options markets.

That was after the federal court in Connecticut unsealed a criminal plea agreement by John Edmonds, a former J.P. Morgan metals trader. In his guilty plea, Edmonds, who is 36-years old, admitted that he and other “unnamed co-conspirators” fraudulently manipulated the precious metals markets while they were employed at J. P. Morgan from 2009 to 2015.

Edmonds said he had learned the illegal trading tactics from senior traders, and then used them hundreds of times with the knowledge of and consent of his immediate supervisors.

Briganti’s lawsuit also names John Edmonds and a group of yet-to-be-identified precious metals traders and the bank as defendants.

On Wednesday, the lawyers sent a letter to Judge Koeltl saying they were having difficulty locating Edmonds to serve him legal papers and requested a 30-day extension to do so, which the judge granted on Thursday. Briganti noted that they have been in contact with Edmonds’ attorney in the criminal case. Edmonds’ attorney and Briganti could not be reached for comment.

“We are hopeful that this extension will result in completing service on Mr. Edmonds without formal motion practice and a request for alternative means of service,” Briganti said in the letter.

The next step in the civil case is for the plaintiffs to file an amended class action complaint and set a schedule for defendants to respond.

In addition to the proposed class action, J. P. Morgan also faces a separate civil suit which also accuses the bank of rigging precious metals markets.

end

March 4.2019

Parker City News

JP Morgan faces potential class action lawsuit after guilty pleas by a former metals trader

Traders from across the U.S. are banding together to accuse J. P. Morgan Chase of manipulating precious metals markets for years.

At least six lawsuits, all making similar allegations against the nation‘s largest bank, have been filed in New York federal court in the past month, since federal prosecutors in Connecticut with a former J. P. Morgan Chase metals trader.

The cases could potentially include thousands of people who traded in the precious metals market. The White Plains, N.Y., law firm Lowey Dannenberg is asking the court to combine the cases and name it as the lead.

The law firm‘s commodities group is led by Vincent Briganti, the attorney who filed the first lawsuit on behalf of Dominick Cognata, a New York resident who alleges he suffered losses due to J. P. Morgan‘s trading conduct in the silver and gold futures and options markets.

A combined case, seeking class action status, would include anyone who purchased or sold futures contracts or an option on NYMEX platinum or palladium or COMEX silver or gold between at least Jan. 1, 2009, and Dec. 31, 2015. The lawyers believe that “at least hundreds, if not thousands” of traders would be eligible to join the case.

Named as defendants in all of the lawsuits are John Edmonds, a 36-year old former metals trader at J. P. Morgan, a group of yet-to-be-identified precious metals traders and the bank.

Edmonds, a New York resident, pleaded guilty in October to one count of conspiracy to defraud the market and manipulate prices of precious metals futures contracts and one count of commodities fraud. In the criminal plea, Edmonds admitted that he and other “unnamed co- conspirators” at J. P. Morgan, fraudulently manipulated precious metals markets from 2009 to 2015, the same time frame covered in the class action suits.

Briganti filed the initial class action on Nov. 7, just one day after the Justice Department unsealed Edmonds‘ plea in the U.S. District Court of Connecticut.

Edmonds admitted in his guilty plea that he deployed the illegal trading scheme hundreds of times with the direct knowledge and consent of his immediate supervisors. Plaintiffs say they have suffered economic injury, including monetary losses, as a direct result of actions by Edmonds and the other unnamed J. P. Morgan metals traders in the futures and options contracts.

One of the suits alleges that “the number of unlawful trades that JP Morgan traders executed in precious metals futures markets is at least in the thousands.”

J. P. Morgan declined to comment. Lowey Dannenberg did not respond to a request for comment by CNBC.

The Justice Department‘s criminal investigation is still ongoing and recently caused a separate related civil case to be put on hold for at least six months while the government continues its investigation. That civil lawsuit, which also accuses J. P. Morgan of rigging the precious metals market, was filed in 2015 by hedge fund manager Daniel Shak and two commodity traders.

After reviewing the details of the plea agreement, David Kovel, the attorney for Shak‘s suit, sought to re- interview Edmonds, along with two other current and former senior traders at the bank. However, the government argued that reopening questioning would be detrimental to the ongoing criminal investigation. The federal judge overseeing the proceedings ordered a six-month stay in the civil case.

Kovel declined to comment.

Edmonds was originally scheduled to be sentenced in Hartford, Conn., on Wednesday, Dec. 19, but a court filing on Nov. 27 shows the sentencing has been postponed until June. A spokesman for the U.S. Attorney for Connecticut could not elaborate on why the sentencing was postponed since the court filing is under seal.

-END-

Justice Department stalls another class action in gold market rigging, this one against JPM

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

Proceedings in the federal class-action anti-trust lawsuit against JPMorganChase charging the investment bank with manipulating the gold and silver futures markets —

http://www.gata.org/node/18844

— have been suspended for three months at the request of the U.S. Justice Department, just as the department has arranged suspension of proceedings in the class-action anti-trust lawsuit against Deutsche Bank charging similar market manipulation.

… 

In both cases the Justice Department has told U.S. District Court for the Southern District of New York that proceedings would jeopardize its criminal investigation into market rigging, which has been admitted by a former JPMorganChase trader, John Edmonds, who awaits sentencing.

According to court filings, the White Plains, New York, law firm representing the plaintiffs against JPMorganChase, Lowey Dannenberg, concurred in the government’s request to suspend proceedings. The stay is to continue for three months and may be extended.

The Justice Department’s motion, granted by the court on February 26 —

http://www.gata.org/files/JPMorganChaseClassActionStay.pdf

— said “the government is not seeking an open-ended stay that could indefinitely postpone this matter and thus jeopardize the parties’ interests in a timely resolution.” The motion added, “Any developments in the criminal case during the period the consolidated action is stayed may reduce or completely resolve the need to litigate certain issues in the consolidated action.”

Much of the Justice Department’s motion is redacted to conceal from the public evidence still under investigation. Edmonds has said he and other traders manipulated the gold and silver markets for years with the knowledge of their supervisors at JPMorganChase. In its motion to conceal that evidence, also granted by the court on February 26, the Justice Department said disclosure “could lead to destruction of evidence, flight from prosecution, and otherwise interfere with the government’s ability to conduct its investigation”:

http://www.gata.org/files/JPMorganChaseClassActionStaySeal.pdf

Monetary metals investors may be skeptical of the Justice Department’s stalling the Deutsche Bank and JPMorganChase cases, since the department and the U.S. Commodity Futures Trading Commission do not seem ever to have responded conscientiously to complaints of gold and silver market rigging until the class actions commenced.

How much time will the court give the Justice Department to delay getting to the bottom of the issue? The court might hasten matters if enough monetary metals mining companies protested the harm done to them and their shareholders by market rigging, but of course most monetary metals mining companies don’t mind at all.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

* * *

Your early WEDNESDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/7 AM EST

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0001/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  7.0049   /shanghai bourse CLOSED UP 66.59 POINTS OR 2.06%

HANG SANG CLOSED UP 110.38 POINTS OR 0.45%

 

2. Nikkei closed DOWN 260.27 POINTS OR 1.15%

 

 

 

 

3. Europe stocks OPENED ALL MIXED/

 

 

 

USA dollar index UP TO 93.70/Euro RISES TO 1.1729

3b Japan 10 year bond yield: FALLS TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 105.10/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI:: 41.49 and Brent: 43.70

3f Gold UP/JAPANESE Yen UP CHINESE YUAN:   ON -SHORE UP/OFF- SHORE: UP

3g Japan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa./“HELICOPTER MONEY” OFF THE TABLE FOR NOW /REVERSE OPERATION TWIST ON THE BONDS: PURCHASE OF LONG BONDS AND SELLING THE SHORT END

Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.

3h Oil DOWN for WTI and DOWN FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.50%/Italian 10 yr bond yield DOWN to 1.00% /SPAIN 10 YR BOND YIELD DOWN TO 0.34%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.60: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.06

3k Gold at $1956.15  silver at: 24.27   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 7/100 in roubles/dollar) 72.46

3m oil into the 41 dollar handle for WTI and 43 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 105.10 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9182 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0772 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

3p BRITAIN VOTES AFFIRMATIVE BREXIT/LOWER PARLIAMENT APPROVES BREXIT COMMENCEMENT/ARTICLE 50 COMMENCES MARCH 29/2017

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.50%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 0.582% early this morning. Thirty year rate at 1.226%

5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.

6.  TURKISH LIRA:  UP  TO 6.9702..

“Wobbly” Markets Tread Water Ahead Of FOMC As Asian Covid Cases Surge

US equity futures and European shares fluctuated on Wednesday, treading water and generally unchanged ahead of the latest FOMC meeting at 2pm today, while a resurgence of COVID-19 cases in Asia (especially China, Japan and Hong Kong) kept investors cautious. The dollar slipped in the run-up to Wednesday’s decision from the Federal Reserve’s policy meeting.

 

Wall Street closed lower on Tuesday and the negative sentiment continued through the Asian session, with Japan’s Nikkei falling on a rising yen and a weak start to the corporate earnings season. The MSCI world equity index was flat in early trading while mixed corporate earnings sent MSCI’s main European Index down by a quarter of a point.

Deaths from coronavirus in the United States registered their biggest one-day increase since May on Tuesday, with this month’s spike in infections having forced some states to make a U-turn on the reopening of their economies. Asia and Europe have also been hit by new surges in COVID-19 infections, with several countries imposing new restrictions and Britain imposing 14-day quarantines on travellers from Spain. Global airlines cut their coronavirus recovery forecasts on Tuesday, saying it would take until 2024 – a year longer than previously expected – for passenger traffic to return to pre-crisis levels.

“It should be clear to investors that the virus itself is not going away,” said David Riley, chief investment strategist at BlueBay Asset Management. “It’s something that’s going to be there having an impact on behaviour, having an impact on economic activity through the remainder of this year and into much of next year.”

U.S. futures and European equities swung from losses to modest gains as major earnings streamed in. AMD jumped about 10% in the premarket after increasing its guidance and Starbucks advanced on a sales rebound. Seagate Technology tumbled after an earnings miss.

Europe’s STOXX 600 was up 0.1%, Germany’s DAX was down 0.1% and France’s CAC 40 gained 0.7% on the back of a flurry of better than feared results, including from heavyweight luxury group Kering.  Spanish bank Santander reported a record second-quarter loss while Germany’s Deutsche Bank gave a slightly improved outlook. Barclays fell on bad loan provisions.

Asian stocks fell, led by energy and industrials, after rising in the last session. Markets in the region were mixed, with Japan’s Topix Index and India’s S&P BSE Sensex Index falling, and Shanghai Composite and Hong Kong’s Hang Seng Index rising. The Topix declined 1.3%, with Melco Holdings and SB Technology Corp falling the most. The Shanghai Composite Index countered the broader Asian weakness, rising 2.1%, with Xi’an Bright Laser Technologies and Anji Micro posting the biggest advances.

In Asian economic news, the Hong Kong recession turned into a depression, with the preliminary reading of Q2 Hong Kong GDP growth coming in at an all time low -9.0% yoy, while in quarter-over-quarter non-annualized terms, real GDP contracted by 0.1% in Q2, vs. a 5.5% decline in Q1 2020. Private consumption, fixed investment and services trade fell further on a year-over-year basis while goods trade growth turned less negative in Q2 compared with Q1, helped by the recovery of the mainland China economy. Looking ahead, external demand might recover in Q3 but the recent surge of local coronavirus cases and the related tightening of social distancing requirements could weigh on domestic activity.

 

“Global stock markets appear to be starting to get a little wobbly as the latest earnings numbers start to paint a picture of a global economy that could start to face a challenging time in the weeks and months ahead,” wrote Michael Hewson, chief market analyst at CMC Markets UK. “The resurgence of coronavirus cases starting to get reported across the world is prompting the realisation that hopes of a V-shaped recovery are starting to look like pie in the sky.”

Investors will be keeping a close eye on the U.S. Federal Reserve which concludes its two-day meeting. The Fed is expected to sound reassuringly accommodative at its policy review later in the day and perhaps open the door to a higher tolerance for inflation – something dollar bears think could squash real yields and sink the currency even further.  With data from unemployment claims to credit-card spending and air travel plateauing in July, Fed Chairman Powell is expected to reinforce his message that it will do whatever it can to support the recovery, while repeating a call for fiscal aid from Congress.

Investors are also focused on U.S. Congress and White House as they clash over new measures to replace enhanced coronavirus unemployment benefits that are due to expire on Friday. BlueBay’s Riley said the market consensus was that a $1 trillion support package will be agreed. “I think that’s a kind of bare minimum and that won’t be the last that will be needed,” he said.

“The Fed may not announce anything new but there is an assumption that monetary and fiscal policy will be there to bridge the gap,” said Chris Chapman, a portfolio manager at Manulife Investment. “Plus, there is a lot of optimism about potential vaccines, given how many are in the works. The combination of those factors gives people reason to look at risk.”

 

After today’s Fed announcement, investors will keep an eye on earnings this week from Amazon.Com, Apple and Alphabet for clues on whether the resurgence of Covid-19 is affecting tech companies and a recovery in the global economy. A drop in U.S. consumer confidence added to evidence that the pace of the rebound is cooling as the virus interrupts reopenings in several states.

In rates, Treasuries drifted lower into early U.S. session as S&P 500 E-minis pare losses, weighing on long end of the curve. Broadly calm price action was evident in Asia, early Europe on low volumes ahead of Fed decision where no policy move is expected but some strategists have suggested an extension in duration of bond purchases is a possibility in the near-term. U.S yields were cheaper by 1bp-2bp at long with 2s10s, 5s30s steeper by ~1bp; 10-year yields ~0.59%, higher by 1.2bp vs Tuesday’s close. Asia session UST futures volumes dropped back to 60% of 20-day average levels as looming FOMC decision curbed risk-taking. High-grade euro zone bond yields dropped to their lowest in more than two months. The German 10-year yield was at -0.505%, having hit as low as -0.521%.

In FX, a gauge of the dollar fell to the lowest level since mid-2018 amid gloomy sentiment on virus recovery and a drop in U.S. consumer confidence, heading toward its worst monthly performance against peers in almost one decade. The euro resumed its advance, rising 0.5% toward the $1.18 mark while the pound advanced for a ninth day to the strongest level since March. The Norwegian krone leads gains among G-10 currencies as crude prices rally; the Aussie dollar outperforms its Kiwi peer after Australian CPI data beat estimates.

In commodities, gold hovered just below its record $2,000 an ounce and Bitcoin was steady just above $11,000 as the two assets took a breather after eight-day rallies. Gold was down 0.2% at $1,957.32 an ounce. Oil prices climbed after a surprise drop in U.S. crude inventories was enough to offset concerns about U.S. fuel demand, though concerns about the record increases in COVID-19 infections kept gains in check.

Lastly to the day ahead, where the big event is the Federal Reserve meeting in the US and Chair Powell’s press conference. On the data front we will get weekly MBA mortgage applications, June advance goods trade balance, pending home sales and preliminary June wholesale inventories. Also it is a large earnings day with Sanofi, Rio into, GlaxoSmithKline, Qualcomm, PayPal, Boeing, Santander, General Electric, General Motors, Barclays and Nomura all reporting.

Market Snapshot

  • S&P 500 futures up 0.2% to 3,220.50
  • STOXX Europe 600 up 0.2% to 368.31
  • MXAP down 0.3% to 167.20
  • MXAPJ up 0.2% to 553.03
  • Nikkei down 1.2% to 22,397.11
  • Topix down 1.3% to 1,549.04
  • Hang Seng Index up 0.5% to 24,883.14
  • Shanghai Composite up 2.1% to 3,294.55
  • Sensex down 0.6% to 38,281.38
  • Australia S&P/ASX 200 down 0.2% to 6,006.39
  • Kospi up 0.3% to 2,263.16
  • Brent futures up 1.2% to $43.72/bbl
  • Gold spot little changed at $1,959.01
  • U.S. Dollar Index down 0.2% to 93.52
  • German 10Y yield fell 0.3 bps to -0.511%
  • Euro up 0.3% to $1.1749
  • Italian 10Y yield rose 2.0 bps to 0.882%
  • Spanish 10Y yield fell 0.5 bps to 0.351%

Top Overnight News

  • The ECB will look at inflation in deciding when to unwind its pandemic stimulus program, said policy maker Yannis Stournaras, suggesting the plan may continue longer than anticipated
  • The U.K. is signing a deal with GlaxoSmithKline Plc and Sanofi to secure as many as 60 million doses of their experimental shot for a coronavirus vaccine
  • Traders are betting central bankers will pin down global borrowing costs to historic lows for years to come
  • The damage to European jobs from virus lockdowns may only be temporarily held at bay by furlough programs, ECB researchers say
  • Credit Suisse Group AG is set to announce a sweeping overhaul of its business, merging its investment bank and capital-markets unit

Asian equity markets traded somewhat indecisively following a lacklustre handover from Wall St where participants pondered over a slew of mixed earnings and as the looming FOMC conclusion and approaching fiscal cliff added to the cautious tone. ASX 200 (-0.2%) and Nikkei 225 (-1.2%) were subdued with Australia contained by underperformance in the commodity-related sectors and tech, as well as the ongoing second wave fears which has prompted Queensland state to shut all borders to the greater Sydney area in New South Wales, while Tokyo stocks were hampered by detrimental currency flows and with focus also centred on earnings updates. This includes Nissan which shares slumped around 10% after it flagged a record loss for the year and Canon shares suffered double-digit declines following an 80%  drop in H1 net, while McDonald’s Holdings Japan were also heavily pressured on news McDonald’s Corp plans to substantially reduce its stake in the Co. to around 35% from 49.99%. Hang Seng (+0.5%) and Shanghai Comp. (+2.1%) swung between gains and losses with early opening weakness eventually pared after the PBoC’s marginal liquidity effort and with headlines also dominated by earnings updates. Finally, 10yr JGBs gained as they took their cue from the bull flattening in US and subdued risk appetite in Tokyo, while the presence of the BoJ added to the support with the central bank in the market for JPY 800bln heavily focused on 1yr-5yr maturities.

Top Asian News

  • Three Gorges Said to Mull $4 Billion Stake Sale in Overseas Unit
  • Hong Kong’s Recession Extends With 9% Drop in Second Quarter
  • Thai Gold Plan May Curb Baht Without Incurring U.S. Anger
  • Nomura Joins Wall Street Giants in Profiting From Trading Boom

European equities (Eurostoxx 50 U/C) have traded with little in the way of firm direction thus far in what has been a morning largely dominated by individual earnings reports rather than broader macro themes. Sector-wise retail names outperform peers with Kering (+4.2%) shares firmer post-earnings despite revenues plunging by around 30% and cautioning that losses in H1 revenue will likely not be offset in H2. Additionally, UK retailer Next (+6.0%) are the top performer in the Stoxx 600 post-earnings with the Co. forecasting an improvement to its baseline scenario seen in April and expectations of making a profit even in the worst-case scenario. Elsewhere, the European banking sector has been in focus today with Deutsche Bank (-2.0%) opening with gains of around 3% before staging a pullback throughout the session following pre-market earnings in which the Co. exceeded revenue expectations for Q2 and raised its revenue outlook. To the downside in the sector, Barclays (-4.3%) are lower on the session post-earnings with the Co.’s provisions coming in above expectations amid fears of a pickup in bad loans amid the fallout from COVID. Elsewhere, BASF (-4.3%) are a notable laggard in Europe after Q2 sales were negatively impacted by a slightly lower price level and were unable to provide FY guidance. UK homebuilders are also suffering this morning following earnings from Taylor Wimpey (-8.9%) after posting a GBP 39.8mln loss and forecasting a 40% decline in home completions in 2020. Looking ahead, asides from the FOMC and wrangling in Washington over the stimulus bill, today’s docket sees another busy one for earnings with Anthem, Spotify, General Electric, Boston Scientific, Boeing, General Motors due to report in the pre-market with Qualcomm and Paypal due after-hours.

Top European News

  • U.K. Builds Up Covid Vaccine Supply With Glaxo, Sanofi Deal
  • BC Partners Seals Buyout of $3.4 Billion Italy Machine Firm IMA
  • ECB’s Stournaras Says Virus Bond-Plan Exit Depends on Inflation
  • Barclays Signals Economic Pain Ahead With Bad Loan Charges

In FX, some may cite pre-FOMC caution as a reason for renewed USD downside pressure, but in truth the Greenback was already wilting towards the end of Tuesday’s EU session after the DXY failed to build a base back on the 94.000 handle and the index is now struggling to keep sight of 93.500 within a 93.800-385 range. Prior to the main events (policy announcement at 19.00BST and press conference chaired by Powell at 19.30BST), a raft of US data, but nothing top-tier or likely to alter the Buck’s largely luckless fortunes, especially as month end selling could start in earnest from today.

  • AUD/CHF/EUR – The major beneficiaries of the latest US Dollar downturn, with the Aussie within a whisker of recent highs and not too far from 0.7200 in wake of fractionally better than expected Q2 CPI data overnight (though still deflationary and the biggest q/q decline on record). Meanwhile, the Franc is forging fresh multi-year gains through 0.9150 and the Euro has bounced following a test of 1.1700 yesterday to 1.1760+ and eyeing its 1.1781 peak from Monday, which would expose 1.1800 again and a 1.1815-51 resistance zone.
  • GBP/CAD/JPY/NZD – Also advancing mainly at the Greenback’s expense, as Cable breaches another key chart hurdle around 1.2955 to open a path towards option barriers said to be sitting at 1.3000, the Loonie rebounds from sub-1.3400 to circa 1.3340, the Yen makes a more convincing break above 105.00 where 1 bn option expiries reside and the Kiwi returns to pivot 0.6650 after peering above 0.6675 and similar size expiry interest. Note, little sign of angst for the Jpy after Fitch downgraded Japan’s ratings outlook to negative from stable or dovish BoJ commentary via Amamiya.
  • SCANDI/EM – Relatively upbeat Swedish industrial sentiment indicators helping to keep the Krona afloat and a bounce in crude assisting the Norwegian Crown, while EM currencies are deriving varying degrees of support from the broadly weak Buck. However, the Rand is also inflated by SA CPI rising for the first time in 4 months and Lira is lagging even though Turkish banks are said to have sold around Usd 2 bn to defend the Try and the CBRT upgraded it year end inflation forecast to 8.9% from 7.4%.

In commodities, WTI and Brent front month futures are firmer by circa 1% as it stands, with newsflow for the crude complex once again quiet and little aside from last night’s private inventories which printed a larger than expected to draw of 6.83mln. While the complex is supported this morning, it is only some USD 0.20/bbl firmer on the week for WTI and still off the week’s USD 41.91/bbl high and the month’s peak of USD 42.49/oz. For the session ahead focus will be on the EIA report for confirmation of the private release; albeit, expectations look for a modest build of 0.357mln from last week’s more substantial build of 4.892mln. Turning to metals, where spot gold is trading in the middle of a much narrower range after yesterday’s downside action which saw it drop near to the USD 1900/oz mark’ at present, the low is at USD 1948/oz and high some USD 14/oz above this. Elsewhere, Rio Tinto provided a H1 update, the first major iron ore miner to do so, remarking that order books are full given strong China demand for the ore and high prices in H1 helped alleviate COVID-19 related impacts; albeit, noted the recovery for US & Europe is tentative at present.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 4.1%
  • 8:30am: Advance Goods Trade Balance, est. $75.4b deficit, prior $74.3b deficit
  • 8:30am: Wholesale Inventories MoM, est. -0.5%, prior -1.2%; Retail Inventories MoM, est. -2.7%, prior -6.1%
  • 10am: Pending Home Sales MoM, est. 15.0%, prior 44.3%; YoY, est. 2.2%, prior -10.4%
  • 2pm: FOMC Rate Decision

DB’s Jim Reid concludes the overnight wrap

It was a day of treading carefully whilst working from home yesterday. Every time I went downstairs from my study to the kitchen to make a cuppa or to have lunch I had to watch my step as there were landmines everywhere. Yes yesterday was the day my wife decided to start to potty train our twins and leave their nappies behind forever. To say the results were mixed was an understatement. On day one Eddie has a 10-2 lead over Jamie on the star chart. Jamie kept on missing the target. We’re hoping for a high scoring draw every day for the rest of the week.

There haven’t been too many landmines this week in markets even with last night’s small pullback in US risk assets. From here the news flow should increase in a back-loaded week with a slew of earnings reports (including many large caps) and the conclusion of the FOMC today. Today will also see the CEOs from Amazon, Apple, Facebook and Alphabet come before the US Congress for an antitrust probe aimed at whether the companies are cutting off competition by crowding out smaller rivals.

There was a small taste of what today’s FOMC meeting could offer yesterday when the Fed announced that they are extending most of its emergency lending programs until the end of the year. Our US Economics team does not expect any significant policy announcements later though, instead they expect Chair Powell to set the stage for a more consequential announcement in September, likely around forward guidance, the balance sheet and the policy review later this year. For their full preview see here.

The S&P 500 closed -0.65% with a defensive twist to proceedings as Utilities (+1.56%) and Real Estate (+2.05) led the index higher while Tech Hardware (-1.84%) and Semis (-1.57%) were among the worst industries. With tech underperforming, possibly with some profit-taking ahead of a Fed meeting and month-end, the NASDAQ was down -1.27%.

On the other hand, European stocks gained slightly yesterday with the STOXX 600 up +0.48% as the theme of defensives (Real Estate +2.10% and Food & Bev +1.36%) outperforming persisted here as well. In yesterday’s CoTD we highlighted (see here) how with roughly a third of the S&P having reported, 85% are beating their earnings estimates. This is well ahead of the average 73% beat rate and the highest since our data starts in 2006 according to our colleague Binky Chadha.

Looking at some specific earnings from yesterday, semiconductor-maker Advanced Micro Devices increased its revenue forecast for the full year and was up +10.3% in after-market trading. Pfizer likewise rose (+3.97%) after the company raised its forecast and started a later-stage trial for a coronavirus vaccine. At the same time bellwethers like McDonald’s (-2.47%) and 3M (-4.84%) disappointed. The former saw same-store sales in the second quarter drop by -23.9%, slightly worse than analysts estimated, while the latter saw profits and revenues miss analyst estimates as their margins compressed during the pandemic.

Ahead of the FOMC, the USD index looked to trade positive for the first time in 8 sessions and only the second time in the last 13 and finished +0.03%. Gold rose +0.83%, gaining for the 8th day in a row, even with the dollar drop abating. However, Silver saw a small pullback, down -0.76% yesterday.

Elsewhere, core sovereign bonds were slightly higher as US 10yr yields fell -3.6bps to 0.579% and bunds dropped a smaller -1.7bps to -0.51%. Peripheral bonds showed a little waning risk sentiment as the spread of Italian, Spanish and Portuguese 10yr bonds to bunds rose by +3.3 to 3.6bps each.

Staying in Europe, there continues to be increasing measures to ensure there is no second wave. Greece has now reinstated compulsory mask wearing from today onward in all stores and the majority of indoor public spaces. Yesterday Madrid joined other regions of Spain in mandating face masks in public spaces, including in bars and restaurants. The local government also sought to limit gatherings in the area to 10 people, reducing capacity in public places. This comes even as Spanish Prime Minister Sanchez criticised the U.K. for including some Spanish islands to the country’s list of places that would require travelers to quarantine after returning, calling the decision “unbalanced” and citing the low case counts in those regions. This has caused the UK to re-examine the blanket rules for countries and may result in more tailored guidelines, according to Transport minister Charlotte Vere.

One small example of the difference between the virus in Europe and the US is in how it’s impacting sports. While the English Premier League announced that during the week ending 26 July, nearly 1,600 players and club staff were tested for COVID-19, of which zero tested positive, the American Baseball season has issues as the Miami Marlins have temporarily suspended playing with 17 of 30 players infected just a few games into the start of the season. Overall the US continues to see some case slowing in highly affected Western states such as California and Arizona. Both states saw their one day rise in cases under their weekly averages, while California’s 7-day average daily rise fell to 2% for the first time since early-June and Arizona’s fell to the lowest observed during the pandemic at 1.6%. Meanwhile, the positive-test rate in Texas fell to 12.83%, the lowest since June 25. However the US is still seeing c. 60,000 new cases per day across the country, which is nearly 18,000 more than exactly a month ago. The efforts to suppress the virus are likely to start showing in the macro data within the next few weeks.

In Asia, China reported over a hundred new cases overnight for the first time since it brought the outbreak in Wuhan under control. The majority of cases were reported from Xinjiang province’s capital city Urumqi, where authorities have isolated some communities, restricted public transport and ordered widespread testing. Meanwhile, Australia’s (relatively) hard-hit Victoria state reported 295 new cases in the past 24 hours, the lowest daily tally in 9 days with the state’s premier expressing hope that it is the start of a downward trend. Elsewhere, Hong Kong is mulling postponing September’s legislative elections by a year as the current outbreak is yet to come under control.

Markets in Asia are trading mixed overnight with the Shanghai Comp (+1.05%) outperforming but with the Hang Seng (+0.12%) and Kospi (+0.25%) also up. The Nikkei (-1.01%) is down possibly partly on news that Fitch have revised down the outlook on Japan’s sovereign rating to negative from stable while keeping the rating unchanged. Elsewhere, Futures on the S&P 500 are trading flattish while, spot gold and silver prices are down -0.25% and -0.50% respectively.

In terms of the all important US fiscal situation, Senate Republicans have officially kicked off negotiations with Democrats, though the presented $1trl relief package continues to have detractors in the GOP. While leaders in the Democratic party and the Republican Senators both oppose large portion of the bill, they both conceded that they need to find common ground and that the August recess is a deadline.

Sticking with the US, Democrats Presidential Candidate Joe Biden said overnight that he will seek for an amendment to the Federal Reserve Act that would require the Fed to report on racial economic gaps and what policies they are implementing to close these gaps. He said the Fed’s existing mandate promotes maximum employment and stable prices and “should add to that responsibility, and aggressively target persistent racial gaps in jobs, wages and wealth.” However, his campaign said later that Biden has not explicitly embraced a third mandate for the Fed but seeking one in the future is an option.

On the data front, the main news was out of the US where the Conference Board’s measure of consumer confidence in July fell 5.7pts to 92.6 (vs. 95.0 expected). Tellingly, the drop was led by declines in the “expectations” component, while the “present situation” index continued to improve slightly. There was also a great deal of differentiation on the state by state level. California fell to the lowest level since March 2013, Texas the lowest since Aug 2012, and Florida the lowest since Aug 2016. It is not hard to see this tied to the recent and ongoing spike in covid-19 cases in these states. The overall US level remains at lows last seen in 2016.

Lastly to the day ahead, where the big event is the Federal Reserve meeting in the US and Chair Powell’s press conference. On the data front we will get prints on France’s July consumer confidence, UK June consumer credit, mortgage approvals and M4 money supply. In the US data includes weekly MBA mortgage applications, June advance goods trade balance, pending home sales and preliminary June wholesale inventories. Also it is a large earnings day with Sanofi, Rio into, GlaxoSmithKline, Qualcomm, PayPal, Boeing, Santander, General Electric, General Motors, Barclays and Nomura all reporting.

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 66.59 POINTS OR 2.06%  //Hang Sang CLOSED UP 110.38 POINTS OR 0.45%   /The Nikkei closed DOWN 260.27 POINTS OR 1.15%//Australia’s all ordinaires CLOSED DOWN .31%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0001 /Oil UP TO 41.49 dollars per barrel for WTI and 43.70 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 7.0001 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0049 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/USA DOLLAR
China fearing the loss in value of the dollar has quietly cut its dollar usage in cross border tradeby 20%
(zerohedge)

China Has Quietly Cut Dollar Usage In Cross-Border Trade By 20%

The chorus calling for a weaker dollar is getting louder, and now includes none other than a stark warning from Goldman Sachs, which in a stunning shot across the bow of the modern monetary system warned overnight that U.S. monetary and fiscal policy (i.e., helicopter money a/k/a MMT) is triggering currency “debasement fears” and that for the first time “real concerns are emerging” about the future of the dollar as a reserve currency.

And while the DXY Index got a rare reprieve from the selling on Tuesday – despite Goldman’s ominous warning – gold continued marching higher, even as technical indicators show signs of near-record overextension.

As Bloomberg’s Ye Xie summarizes, “it seems like a perfect storm for the U.S. currency: the relentless decline of real yields, the U.S.’s inability to control the virus, the overhang of the twin deficits and the dear valuation.” Adding to reserve currency concerns, Bridgewater’s Ray Dalio – who is clearly talking either his or Beijing’s book although these days the two appear interchangeable – warned a Sino-U.S. “capital war” could harm the dollar.

Meanwhile, as Rabobank’s Michael Every has been discussing for the past few months, with the U.S. now using the privileged role of the dollar for political gains, such as penalizing banks over issues in Hong Kong and Xinjiang for instance, it will naturally alarm politicians in other countries, Xie adds.

Indeed, as Xie adds, China is already is quietly reducing its reliance on the dollar in cross-border trade and services. The percentage of the payments and receipts denominated in yuan in total FX transactions by banks for their clients increased to 37% in June, from 19% two years ago, according to data compiled by the State Administration of Foreign Exchange, with the Bloomberg strategist also calculating that the usage of the dollar has declined to 56% from 70% – a decline of ~20%.

While this shift partly reflects local companies’ desire to limit their exposure to FX volatility, it may also mirror an intentional nudge from the authorities… and it’s not just trade.

Picking up on his recent observation that Jack Ma’s decision to list his giant Ant Group in Shanghai and Hong Kong (where it is seeking a $200BN valuation) instead of the US, coupled with the exodus of U.S.-listed Chinese companies from America, Xie writes that this underscores the shift in capital markets, and adds that “by extension, one has to wonder what Beijing might to do with its $1.1 trillion Treasury holdings.”

Guo Shuqing, the party secretary of the PBOC, delivered a stern warning on the U.S. currency last month: “Some people say, ‘Domestic debt is not debt, but external debt is debt. For the United States, even external debt is not debt.’ This seems to have been the case for quite some time in the past, but can it really last for a long time in the future?”

As Xie concludes referring to the chart above, “apparently China isn’t waiting to find out the answer.”

END
CHINA/GLOBE/CORONAVIRUS UPDATE

Fears Of “Third Wave” Intensify As China Suffers Biggest Jump In COVID-19 Cases Since April: Live Updates

Summary:

  • China suffers biggest jump in new cases since April
  • Hong Kong cases top 3,000
  • Philippines overtakes Mainland China total
  • Osaka reports another 200+ new cases
  • 16.7 million global cases
  • 659,000 deaths

* * *

As anxieties about a global “second” (or, in Hong Kong’s case, “third”) wave intensify, health authorities in China have just reported the biggest daily jump in new COVID-19 cases on the mainland in three and a half months on Wednesday when 101 new coronavirus cases were reported by the health commission.

Over the past few months, health authorities have moved quickly, imposing lockdown measures, closing schools and rolling back other freedoms wherever new clusters were discovered be it Beijing, Wuhan, Dalian, Xinjiang, Urumqi or another city. Yesterday, Chinese officials reported a new case in Beijing (the capital city’s first case in 3 weeks) that authorities purportedly linked to an outbreak in the northeastern port city of Dalian.

Wednesday’s total was the highest in over three and a half months, according to the National Health Commission. Most of the infections were tallied in Urumqi, the capital of China’s far-western Xinjiang Province, while one case was reported in Beijing. 27 of the cases were asymptomatic, authorities said, while three were ‘imported’ cases.

As of Tuesday, mainland China had 84,060 confirmed coronavirus cases…while the official death toll remained at 4,634. Inexplicably, China has suspended poultry imports from a BRF-Brazil Foods plant, according to information from China customs published July 29. China has barred imports of seafood from several Latin American (and other international) producers after supposedly detecting COVID-19 on the packaging.

China’s resurgence follows the discovery of a new cluster in Hong Kong that has prompted city officials to adopt the most restrictive social distancing rules yet, including ordering bars and restaurants to close for indoor service, and restricting public gatherings to a maximum of 2 people. The city reported another 118 cases on Wednesday, the 8th straight day that daily new infections surpassed 100.

Of the 118 cases, 113 were locally-transmitted and the remainder were imported. 46 of the 113 cases were of unknown origin. The city’s deaths reached 24.

The measures imposed in Hong Kong are expected to last for at least one week as leader Carrie Lam warned the city is on the brink of a large-scale outbreak.

Elsewhere in the region, the Philippines officially overtook mainland China with the total recorded number of coronavirus disease cases climbing to 85,486 cases on Wednesday, compared to China’s official count of 84,060.

The latest data from the Philippines Department of Health reported another 1,874 cases, bringing the total to 85,486 COVID-19 cases.

Of the total number of infections, 56,528 were counted as active.

Metro Manila topped the list of areas with new COVID-19 cases with 728. 388 new recoveries were recorded bringing the total number of patients to 26,996.

However, the country’s COVID-19 death toll hit 1,962 as 16 new deaths were reported.

Finally, the Western Japanese prefecture of Osaka recorded at least 220 new coronavirus cases on Wednesday, NHK reports.

Nearly 16.7 million people have been diagnosed with the virus around the world. Some 9.7 million patients have recovered, and more than 659,000 have died, according to data from Johns Hopkins University.

As we await Wednesday’s numbers out of the US and Europe, we expect to see the focus of the international community to start shifting back to Asia.

end

CHINA/USA/CORONAVIRUS ORIGIN

Wuhan’s Batwoman demands a Trump demands an apology as she parrots the official CCP line. However our new whistleblower describes in detail the coverup and she will detail how the lab caused the virus to leak

(zerohedge)

Wuhan’s ‘Bat Woman’ Demands Trump Apology As New Whistleblower Describes Early CCP Cover-Up

Dr. Shi Zhengli – the Wuhan Institute of Virology (WIV) ‘Bat Woman’ who fell under international scrutiny in 2015 over her ‘gain-of-function‘ experiments to make bat coronaviruses transmissible to humans – has hit back at accusations that COVID-19 escaped from her lab, and says President Trump should apologize for promoting the theory.

After taking two months to respond to a series of questions by Science magazine, Zhengli emailed the publication  answers which Rutgers molecular biologist, Richard Ebright, says are “formulaic, almost robotic, reiterations of statements previously made by Chinese authorities and state media.

Zhengli, whose answers were coordinated with the Chinese Academy of Sciences, which WIV belongs to, claims that she and her colleagues discovered SARS-CoV-2 in late 2019 in samples from patients who had contracted pneumonia of unknown origin. “Before that, we had never been in contact with or studied this virus, nor did we know of its existence,” she wrote.

U.S. President Trump’s claim that SARS-CoV-2 was leaked from our institute totally contradicts the facts,” she added. “It jeopardizes and affects our academic work and personal life. He owes us an apology.

In April, the Daily Telegraph reported that Western intelligence agencies are investigating Zhengli, as well as her colleague Peng Zhou – over whether COVID-19 originated from a wet market, or whether the virus may have been an accidental release from their level-4 lab.

In mid-April, the Washington Post reported that the US State Department received two cables from US Embassy officials in 2018 warning of inadequate safety at Wuhan Institute of Virology, which was conducting ‘risky studies’ on bat coronaviruses, according to the report – which notes that the cables have “fueled discussions inside the U.S. government about whether this or another Wuhan lab was the source of the virus.”

Meanwhile, Chinese virologist Dr. Li-Meng yan – who specialized in virology and immunology at the Hong Kong School of Public Health and fled Hong Kong in late April, insists COVID-19 was created in a lab, and says she’s going to prepare a “very solid scientific report to show people how easily this can be done from the lab.”

And lastly, a Chinese professor has accused the CCP of destroying evidence and delayed action in the early days of the outbreak – including evidence that COVID-19 is transmissible between humans, according to VICE.

 

Professor Kwok Yung Yuen

On January 12, Professor Kwok Yung Yuen diagnosed a family with the coronavirus in Shenzhen, 700 miles from Wuhan. Only some of the family members had been to the city where the COVID-19 outbreak originated, so Yuen knew immediately that he was seeing evidence of human-to-human transmission of the new coronavirus.

He immediately alerted the authorities in Beijing.

But it took eight days for Beijing to warn the world that the coronavirus, which has now killed almost 650,000 people and infected over 16 million, could be spread through human-to-human transmission.

Yuen, who spoke to the BBC show Panorama for an episode due to be broadcast later on Monday, was helping to investigate the outbreak in Wuhan in early January after other whistleblower doctors had attempted to raise the alarm in late December. –VICE

“When we went to the Huanan supermarket, of course, there was nothing to see because the market was clean already,” he said. “So, you may say that the crime scene is already disturbed because the supermarket was cleared, we cannot identify any host which is giving the virus to humans.”

I do suspect that they have been doing some cover-up locally at Wuhan,” Yuen added. “The local officials who are supposed to immediately relay the information has not allowed this to be done as readily as it should.”

4/EUROPEAN AFFAIRS

GERMANY/USA

As promised, Trump moves to withdraw a huge 12,000 USA troops from Germany

(zerohedge)

In Huge Shakeup, Trump Moves To Withdraw 12,000 US Troops From Germany

Earlier this summer President Trump directed the Pentagon to withdraw some ten thousand US troops from Germany by September, following years of the administration severely criticizing lack of enough military spending from its European ally. This inevitably set up a fight and push back from both hawks and Congress and some among the defense establishment.

It also came out of ‘America First’ related promises made going back to the campaign trail wherein the president vowed to stop being the world’s global policeman and to ultimately “bring to troops home” from far flung stations. Cited as still angry that Germany is “taking advantage” and “not paying their NATO fees” Trump has moved to withdraw about 12,000 troops from Germany, Bloomberg reports.

 

Trump at Ramstein Air Base, Germany in Dec. 2018, via AP.

Though the Pentagon has cautioned the drawdown process could take “years”, Bloomberg now reports: “The U.S. plans to withdraw about 12,000 troops from Germany, with some redeploying to other European nations and a little more than half returning to the U.S., a defense official said.”

The AP is describing it has a significant “shakeup” sought by Trump, and notes that an estimated 6,400 will be sent back home – or rather bases on US soil – while 5,400 will be restationed to other countries.

But it will be interesting to see how far it goes in practical terms, given that Germany is a major training hub for US forces across Europe and beyond – all of which is rumored to be on the chopping block as part of the pressure campaign on the NATO ally. Even US Africa Command is headquartered in Germany.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAQ/HEZBOLLAH/ISRAEL/USA BASES (IRAQ)

Fighting escalates as rockets pound USA bases.  This follows the Hezbollah into Israel episode which ended in failure to Hezbollah

(zerohedge/SOUTHFRONT)

Rockets Pound U.S. Bases In Iraq Following Hezbollah-Israeli Escalation

Submitted by SouthFront,

On July 27, fighting broke out between Israeli forces and Hezbollah along the Israeli-Lebanese contact line. This became the heaviest open confrontation between the sides in about a year. The incident occurred in an area known as Shebaa Farms, which was occupied by Israel in the 1967 Middle East war.

Israeli shelling started at around 3:30 p.m. local time which lasted for about an hour and a half. The Israeli Defense Forces (IDF) claimed that they had repelled an infiltration attempt by a Hezbollah unit and there were no casualties among IDF forces. The exchange of fire came as the IDF was on heightened alert for a possible attack by Hezbollah, after an Israeli airstrike in Syria killed a Hezbollah member earlier in July.

In a televised address, Israeli Prime Minister Benjamin Netanyahu warned Hezbollah that it is “playing with fire,” and stated that “Hezbollah and Lebanon bear full responsibility for this incident and any attack from Lebanese territory against Israel.”

In its own turn, pro-Hezbollah sources claimed that Hezbollah targeted a vehicle and a battle tank of the IDF with anti-tank guided missiles.

Hezbollah itself described Israeli claims about the outcome of the clashes as fake and aimed to boost the morale of Israeli forces by fabricating fictitious victories. It also rejected reports about strikes on IDF targets.

“The answer to the martyrdom of [our] brother, Ali Kamel Mohsen, in the vicinity of Damascus airport has not been given yet. Zionist occupiers must still wait for that answer and their punishment at the hands of the resistance forces,” Hezbollah said.

Local sources claim that the strikes came in response to a drone strike on the al-Saqer military camp, south of Baghdad, on July 26. This camp is operated by the Popular Mobilization Units. This branch of the Iraqi Armed Forces is often described by Washington and mainstream media as Iranian proxies and even terrorists.

Even if the incidents in Iraq and the Lebanese-Israeli border were not linked, they serve as strong evidence of the escalating tensions in the Middle East. Despite the defeat of ISIS and the relative de-escalation of the conflict in Syria, the region still remains in a permanent state of escalation. However, now, the source of these tensions is the developing conflict between the Israeli-US bloc and Iranian-led forces.

end

TURKEY/EU/USA
In a rare compromise Turkey pauses on its gas exploration in Greek waters after much EU and USA pressure
(zerohedge)

In Rare Compromise, Turkey ‘Pauses’ Gas Exploration Near Greece After EU & US Pressure

The Turkish gas and oil exploration drama in the East Mediterranean which put Greece and Cyprus on a war footing with Turkish forces has taken a surprise turn.

Amid the ratcheting pressure on Ankara over alleged incursions into Greece and Cyprus’ economic zones coming from the European Union and United States, it appears Turkey has backed down for now.

Days ago France’s Emmanuel Macron even invoked the threat of EU sanctions, citing that it’s “not acceptable for the maritime space of a European Union member state to be violated or threatened.” Turkey has frequently been source of rifts among fellow NATO member states.

 

Via AP

For the first time, Turkey says its ambitious and expansive, but hugely controversial, gas exploration initiative is on hold. On Tuesday TRT World reports that “Turkey has said it could pause energy-exploration operations in the Eastern Mediterranean Sea for a while pending talks with Greece.”

The announcement came from the office of the president, with spokesman Ibrahim Kalin revealing in a CNN Turk interview that Erdogan told his aides to “be constructive and put this on hold for some time”.

He identified that the seismic exploration vessel “Oruc Reis” was set to search for hydrocarbons “180 kilometers from the island of Meis (Kastellorizo in Greek)” — an area Greece recently said it would deploy military assets to if the Turkish operation was initiated.

“Despite this our president said while the negotiations are continuing, let’s be constructive and hold (energy search) for a while,” the presidential spokesman said.

The Greek Navy has said it’s in a state of “heightened readiness” in response to any incursion of Greece’s territorial waters. It boils down to how the rival longtime enemies interpret their offshore zones, with Turkey in the past years using especially its so-called “Turkish Republic of Northern Cyprus” to lay claim to waters entirely surrounding the island.

Below is a Turkish interpretation of its rightful waters, within which some of Greece’s easternmost islands are located:

Likely helping Turkey to hit the pause button was a forceful message out of US Ambassador to Greece Geoffrey Pyatt earlier this week: “I want to echo the clear message from Washington and elsewhere in Europe, urging Turkish authorities to halt operations that raise tensions in the region, such as plans to survey for natural resources in areas where Greece and Cyprus assert jurisdiction in the eastern Mediterranean,” he said.

Pompeo also earlier this month asserted that the US clearly backed Greece, Cyprus, and the EU’s interpretation of the economic zones and Turkish violations of that territory.

6.Global Issues

SWEDEN/CORONAVIRUS//UPDATE

How Sweden defeated the Coronavirus without a lockdown and now its companies are reaping the benefits

(zerohedge)

Sweden Defeated The Coronavirus Without A Lockdown – Now Its Companies Are Reaping The Benefits

Progressive critics of the Trump Administration’s response to the coronavirus pandemic like to point to Sweden and portray the Nordic country’s decision to forego lockdowns as a travesty motivated by greed. Such reductive, black-and-white interpretations are inevitably the result of a childlike analysis where every hero needs to have a hero and a villain. But although Sweden’s COVID-19 czar has admitted that he would have changed certain elements of the country’s response if he could go back in time, the country’s decision to skip lockdowns, and keep the country relatively open, has paid off – even if Sweden does have a significantly higher mortality rate than its neighbors (though still lower than all of the worst-hit western European countries).

Sweden’s death-to-infection ratio is relatively high, a reflection of a series of early outbreaks in managed-care homes that led to widespread fatalities among their elderly and vulnerable residents.

Here’s how Sweden compares to the US, Brazil, the UK, and a handful of other countries.

And as the US remains engulfed in an election-year debate about how to handle the crisis, and whether mandatory social distancing orders (like mask-wearing mandates) and, if necessary, more lockdowns should be used to fight the outbreak – views differ widely across people of different political orientations. Even Dr. Fauci, who has said some of the worst-hit areas should “think about” imposing stay at home orders if things get worse, has worded his views very carefully so as not to sound like an imperative. But as Q2 earnings season enters one of its most consequential weeks in the US, the FT pointed out in a piece published earlier that Sweden’s biggest companies have beaten analysts’ expectations across the board.

It was supposed to be a terrible start to the summer. As a debate rages in Sweden over whether its lighter-touch approach to managing coronavirus has been the correct course, most European analysts were braced for dreadful quarterly earnings from the Scandinavian country during the height of the pandemic.

But every day for the past two weeks, Swedish company after Swedish company has beaten expectations. From telecoms equipment maker Ericsson to consumer appliances manufacturer Electrolux via lender Handelsbanken and lockmaker Assa Abloy, Swedish companies have delivered profits well above what the market was expecting, even if in some cases that merely meant a less precipitous decline than analysts had feared.

“I have never seen such a high proportion of companies coming in with better profits than expected. It’s almost every company,” said Esbjorn Lundevall, chief equity strategist at lender SEB. The bumper crop begs the question of how many of the positive surprises are due to Sweden’s more controversial approach to managing coronavirus. Unlike the rest of Europe and North America, the country did not have a lockdown and kept schools and many shops and businesses open – a public health experiment that has attracted global scrutiny and drawn both praise and censure. “Keeping society open, schools open, doesn’t mean that we haven’t been hit. But it does mean that we haven’t suddenly not been able to leave our homes. That has undoubtedly helped companies,” Alrik Danielson, chief executive of Swedish bearings manufacturer SKF, told the FT.

The earnings have pressed some economists to reconsider their GDP projections for the country.

To be sure, while all boats appear to be rising in Sweden’s COVID-19 resistant economy, bolstered by what experts described as a “psychological” disposition among Swedes not to fear things like going to work, or school, or to a restaurant, some industries have benefited more than others.

There’s a split, analysts say, between companies between domestically focused Swedish companies (ex.retail banks) while the country’s manufacturers like Volvo are struggling with higher levels of “uncertainty” due to the global outlook.

Sweden’s economy has performed so well for a handful of reasons. One is its close economic relationship with both China and the US. China’s economy had already slowed to its weakest pace of growth in 29 years when SARS-CoV-2 came bursting out of Wuhan late last year. But thanks to Beijing’s heavy-handed response to the outbreak, the mainland economy has already returned to growth.

That’s good news for Sweden, which exports many heavy and industrial goods, as well as foodstuffs and other products to China, among other things.

The bigger worry, the FT points out, is Europe, especially as more clusters emerge in Spain, Belgium and elsewhere.

All industrial groups have been helped by signs of recovery in China and a robust early rebound in much of Europe, as well as large government support packages to maintain jobs.

The big worry for them now is about whether a second wave of coronavirus hits Europe and the US in the autumn.

“What is the likelihood that you get more lockdowns? What is the likelihood that this fear factor subsides?” asked Mr Danielson. “That is going to be the big question of how quick the recovery will be. Now it’s about psychology, it’s about people.”

He is not alone in thinking that Sweden has a subtle psychological advantage by dint of having stayed more open and having people less scared of working, shopping and socialising outside the home.

Whatever happens in western Europe, Sweden’s outlook has improved dramatically over the last month. New cases have grown rare…

…and deaths are even rarer.

END

Nouriel Roubini revisits the White Swans of early 2002

(Nouriel Roubini)

Roubini: Revisiting The White Swans Of 2020

Authored by Nouriel Roubini via Project Syndicate,

In February, I warned that any number of foreseeable crises – “white swans” – could trigger a massive global disturbance this year. I noted that:

“… the US and Iran have already had a military confrontation that will likely soon escalate; China is in the grip of a viral outbreak that could become a global pandemic; cyberwarfare is ongoing; major holders of US Treasuries are pursuing diversification strategies; the Democratic presidential primary is exposing rifts in the opposition to Trump and already casting doubt on vote-counting processes; rivalries between the US and four revisionist powers are escalating; and the real-world costs of climate change and other environmental trends are mounting.”

Since February, the COVID-19 outbreak in China did indeed explode into a pandemic, vindicating those of us who warned early on that the coronavirus would have severe consequences for the global economy. Owing to massive stimulus policies, the Greater Recession of 2020 has not become a Greater Depression. But the global economy remains fragile, and even if a V-shaped recovery from highly depressed output and demand were to occur, it might last for only a quarter or two, given the low level of economic activity.

Alternatively, with so much uncertainty, risk aversion and deleveraging on the part of corporations, households, and even entire countries could result in a more anemic U-shaped recovery over time. But if the recent surge of COVID-19 cases in the United States and other countries is not controlled, and if a second wave occurs this fall and winter before a safe and effective vaccine is discovered, the economy would likely experience a W-shaped double-dip recession. And with such deep fragilities in the global economy, one cannot rule out an L-shaped Greater Depression by the middle of the decade.

Moreover, as I predicted in February, the rivalry between the US and four revisionist powers – China, Russia, Iran, and North Korea – has accelerated in the run-up to November’s US presidential election. There is growing concern that these countries are using cyber warfare to interfere with the election and deepen America’s partisan divisions. A close outcome will almost certainly lead to accusations (by either side) of “election-rigging,” and potentially to civil disorder.

The COVID-19 crisis has also severely exacerbated the Sino-American cold war regarding trade, technology, data, investment, and currency matters. Geopolitical tensions are escalating dangerously in Hong Kong, Taiwan, and the East and South China Seas. Even if neither China nor the US wants a military confrontation, increased brinkmanship could lead to a military accident that spins out of control. My warning in February that the Sino-American cold war could turn hot has become more salient since then.

In the Middle East, I expected that Iran would escalate tensions with the US and its allies – especially Israel and Saudi Arabia. But, given Trump’s increasingly evident weakness in the polls, the Iranians have evidently opted for a policy of relative restraint, in the hope that a victory for Joe Biden will lead the US to rejoin the 2015 nuclear deal and loosen US sanctions. But, sensing that its strategic window is closing, Israel has reportedly been launching covert attacks on a range of Iranian military and nuclear targets (presumably with the Trump administration’s tacit support). As a result, talk of Middle East-related “October surprise” is increasing.

I also raised concerns that the Trump administration might use sanctions to seize and freeze China’s, Russia’s, and other rivals’ US Treasury holdings, prompting a sell-off of Treasuries as these countries shift to a geopolitically safer asset like gold. This fear, together with the risk that large monetized fiscal deficits will stoke inflation, has since caused a spike in gold prices, which have risen by 23% this year, and by more than 50% since late 2018. The US is indeed weaponizing the greenback, which has recently weakened as US rivals and allies alike seek to diversify away from dollar-denominated assets.

Environmental concerns are also mounting. In East Africa, desertification has created ideal conditions for biblical-scale locust swarms that are destroying crops and livelihoods. Recent research suggests that crop failures due to rising temperatures and desertification will drive hundreds of millions of people from hot tropical zones toward the US, Europe, and other temperate regions in the coming decades. And other recent studies warn that climate “tipping points” such as the collapse of major ice sheets in Antarctica or Greenland could lead to a sudden catastrophic sea-level rise.

The links between climate change and pandemics are also becoming clearer. As humans increasingly encroach on wildlife habitats, they are coming into more frequent contact with bats and other zoonotic disease vectors. And there is growing concern that as the Siberian permafrost melts, long-frozen deadly viruses will resurface and quickly spread around the world like COVID-19 did.

Why are financial markets blissfully ignoring these risks? After falling by 30-40% at the beginning of the pandemic, many equity markets have recovered most of their losses, owing to the massive fiscal-policy response and hopes for an imminent COVID-19 vaccine. The V-shaped recovery in markets indicates that investors are anticipating a V-shaped recovery in the economy.

The problem is that what was true in February remains true today: the economy could still quickly be derailed by another economic, financial, geopolitical, or public-health tail risk, many of which have persisted and, in some cases, grown more acute during the current crisis. Markets are not very good at pricing political and geopolitical – let alone environmental – tail risks, because their probability is difficult to assess.

But, given the developments of the last few months, we should not be surprised if one or more white swans emerge to shake the global economy again before the year is out.

end

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings WEDNESDAY morning 7:00 AM….

Euro/USA 1.1729 UP .0011 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS//PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /MIXED

 

 

USA/JAPAN YEN 105.10 DOWN 0.080 (Abe’s new negative interest rate (NIRP), a total DISASTER/NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.2975   UP   0.0052  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3362 DOWN .0018 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro ROSE BY 11 basis points, trading now ABOVE the important 1.08 level RISING to 1.1729 Last night Shanghai COMPOSITE CLOSED UP 66.59 POINTS OR 2.06% 

 

//Hang Sang CLOSED UP 110.38 POINTS OR 0.45%

/AUSTRALIA CLOSED DOWN 0,31%// EUROPEAN BOURSES ALL MIXED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL MIXED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 110.38 POINTS OR 0.45%

 

 

/SHANGHAI CLOSED UP 66.59 POINTS OR 2.06%

 

Australia BOURSE CLOSED DOWN. 31% 

 

 

Nikkei (Japan) CLOSED DOWN 260.27  POINTS OR 1.15%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1955.60

silver:$24.37-

Early WEDNESDAY morning USA 10 year bond yield: 0.582% !!! UP 0 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.226 UP 0  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 93.70 UP 1 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.35% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +02%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.35%//DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,00 DOWN 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 65 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.31% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.50% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

Closing currency crosses for WEDNESDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/1:00 PM

Euro/USA 1.1771  UP     .0053 or 53 basis points

USA/Japan: 105.02 DOWN .086 OR YEN UP 9  basis points/

Great Britain/USA 1.2972 UP .0047 POUND UP 47  BASIS POINTS)

Canadian dollar UP 8 basis points to 1.3372

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0018    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0026  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.9800 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +02%

 

Your closing 10 yr US bond yield UP 0 IN basis points from TUESDAY at 0.581 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.24 UP 2 in basis points on the day

Your closing USA dollar index, 93.42 DOWN 21  CENT(S) ON THE DAY/1.00 PM/

 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for WEDNESDAY: 12:00 PM

London: CLOSED UP 2.20  0.04%

German Dax :  CLOSED DOWN 13.02 POINTS OR .10%

 

Paris Cac CLOSED UP 29.80 POINTS 0.60%

Spain IBEX CLOSED DOWN 40.20 POINTS or 0.55%

Italian MIB: CLOSED DOWN 22.06 POINTS OR 0.11%

 

 

 

 

 

WTI Oil price; 41.33 12:00  PM  EST

Brent Oil: 43.80 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    72.55  THE CROSS HIGHER BY 0.02 RUBLES/DOLLAR (RUBLE LOWER BY 2 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.50 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM :  41.27//

 

 

BRENT :  43.75

USA 10 YR BOND YIELD: … 0.565..down 2 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.23..up one basis point..

 

 

 

 

 

EURO/USA 1.1779 ( UP 61   BASIS POINTS)

USA/JAPANESE YEN:105.02 DOWN .091 (YEN UP 9 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 93,39 DOWN 31 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2987 UP 63  POINTS

 

the Turkish lira close: 6.9771

 

 

the Russian rouble 6.9771   UP 0.03 Roubles against the uSA dollar.( UP 3 BASIS POINTS)

Canadian dollar:  1.3342 UP 38 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.50%

 

The Dow closed UP 160.29 POINTS OR 0.61%

 

NASDAQ closed UP 140.85 POINTS OR 1.35%

 


VOLATILITY INDEX:  24.20 CLOSED DOWN 1.24

LIBOR 3 MONTH DURATION: 0.268%//libor dropping like a stone

 

USA trading today in Graph Form

Gold Hits Record High, Yields Hit Record Lows After Powell Promise-Fest

As one would expect, markets were dominated today by Powell’s words with gold and stocks rising after the FOMC statement:

Powell initially promised The Fed will “do whatever it takes for as long as it takes” and stocks and gold spiked.

Everything was fine until Powell reiterated a statement on the pace of recovery slowing and everything reversed.

But then Powell promised to “adjust forward guidance and asset-buying if needed” and the market assumed that if the recovery is slowing that can only mean MOAR!!!!

And stocks rallied back to their highs with Small Caps dramatically outperforming (as The Dow lagged)…

Expectations were high.. and met for now… but watch the next few days…

“The market was operating under the assumption that the Fed will do whatever it has to do to support the market” and policy makers “didn’t disappoint on that front,” said Phil Toews, chief executive and lead portfolio manager of New York-based Toews Corp., which manages $1.9 billion.

“If markets falter over the coming months, the ability of the Fed to act as a put under the markets will be tested,” Toews said via email; “if markets begin to fall despite the Fed’s bond-buying power, it would be a tipping point that would be a huge sell indicator.”

Despite the sudden spike on Powell’s “slowing” comments, the Dollar ended lower on the day (the 8th down day of the last 9)…

Source: Bloomberg

Spot Gold spiked back up to record highs (Dec Futs near $2000)…

Source: Bloomberg

Treasuries were bid and are now all lower on the week led by the belly of the curve…

Source: Bloomberg

with 10Y Yield dropping back to its 2nd lowest yield close in history…

Source: Bloomberg

And 5Y yields tumbled to new record low…

Source: Bloomberg

And real rates plunged to record lows (-96bps)…

Source: Bloomberg

While stocks remain near record highs…

Source: Bloomberg

Cryptos were all higher on the day, extending the week’s gains…

Source: Bloomberg

Gold surged as real yields tumbled…

Source: Bloomberg

Finally, it’s all about fun-durr-mentals, right?

 

Source: Bloomberg

Oh and there’s this…

Pretty much sums it all up really.

And now your more important USA stories which will influence the price of gold/silver

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

FOMC

Gold Futures Near Record High, Stocks Surge As Powell Promises To “Do Whatever It Takes”

Update (1500ET): As Powell’s press conference began and he promised to do whatever it can for as long as it takes,” stocks and gold took off and dollar dumped…

Small Caps are soaring (along with the rest of the stock market majors)…

Gold futures are back near record highs at $2000…

And the dollar losses accelerate…

*  *  *

As Pantheon’s Ian Shepherdson notes:

The Fed made no policy changes, as expected, and the key language of the statement is unchanged… In short, this is a holding operation, pending developments with both the virus itself and fiscal policy.”

Which is perhaps worrisome as we noted ahead of the FOMC statement that BofA ominously warns,“perception that the Fed is out of ammo could cause a reassessment of the Fed “put” and support USD via lower risk assets.”

For now stocks are unmoved but the action remains in currency markets as the dollar accelerates lower on Fed promises to “use all tools” and extends its global bailout swap lines.

This has helped sparked further gains in gold…

Will Powell spoil the party further?

FOMC

*FED EXTENDS CENTRAL BANK DOLLAR REPO AND SWAP LINES TO MARCH 31 *FED HOLDS RATES NEAR ZERO, SAYS VIRUS POSES CONSIDERABLE RISKS *FED REPEATS WILL USE `FULL RANGE’ OF TOOLS TO SUPPORT ECONOMY *FED ON HOLD UNTIL CONFIDENT ECONOMY ON TRACK, VOTE UNANIMOUS

END

 

ii)Market data/USA

Poor wholesale numbers causes hopes to fade

(zerohedge)

‘Recovery’ Hopes Fade As US Wholesale Inventories Unexpectedly Plunge In June

June was supposed to be the month of second-derivative beats in economic data, reaffirming the manic bid in stocks. For Wholesale Inventories it was not.

Against expectations of a rebound from a 1.2% drop in May to a 0.5% drop in June, wholesale inventories actually tumbled 2.0% MoM, the worst since the peak of the great financial crisis…

Source: Bloomberg

On a YoY basis, wholesale inventories are down 6.1%, less than at the peak of the great financial crisis…

Source: Bloomberg

Specifically, Durable Goods inventories fell 2.1% MoM (worsening from June) and Non-durable goods inventories dropped 1.7% MoM (vs unchanged in May).

Retail inventories also tumbled 2.6% MoM in June (but that did slow the collapse from May).

And this data has a direct impact on GDP, suggesting the hoped-for recovery is far from certain… and in fact may be getting worse.

 end
USA pending home sales soar in June
(zerohedge)

US Pending Home Sales Soar In June… To Highest Since 2006!

After rebounds in new- and existing-home sales, pending home sales in June were expected to continue to surge (after screaming 44% higher MoM in May) and they did, rising 16.6% MoM (beating the 15.0% expectations) and sending the YoY sales number UP 12.7%…

Source: Bloomberg

This is the biggest annual rise in pending home sales in over 5 years as mortgage rates hit record lows.

“It is quite surprising and remarkable that, in the midst of a global pandemic, contract activity for home purchases is higher compared to one year ago,” Lawrence Yun, NAR’s chief economist, said in a statement.

“Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve’s maximum liquidity monetary policy.”

And the pending home sales index is back at its highest since 2006

And in case you’re wondering why the housing market was able to bounce so quickly in the face of an historic shock which left 22 million people unemployed? Here BofA offers five explanations:

  1. An uneven recession: the shock disproportionally impacted the lower income population who are less likely to be homeowners. Consider that 55% of households earning less than $35K a year lost employment income vs. only 40% of those earning $75K and above. According to the NAR, the median household income of recent homebuyers is $93k.
  2. Record low interest rates: mortgage rates reached a new historic low last week. Average monthly mortgage payments have declined by $80/month relative to this time last year due to lower mortgage rates.
  3. Running lean pre-crisis: inventory was low, home equity was high and debt levels manageable. The homeowner vacancy rate reached the lows of the mid-1990s.
  4. Supportive fiscal and monetary policy: forbearance programs reduced potential stress from delinquencies – according to the MBA, 7.8% of all mortgages were in forbearance as of July 12, which amounts to 3.9mn homeowners.
  5. Pandemic-related relocations: moving to the ‘burbs is a real phenomenon. Take NYC – according to data from USPS, the number of mail forwarding requests from NYC spiked to more than 80,000 in April, 4X the pre-COVID-19 monthly pace.

Pending home sales rose in all U.S. regions, including an 11.9% gain in the South that boosted the region’s index to the highest in records back to 2001. Purchases also increased 12.2% in the Midwest to the strongest since February 2017 and climbed 11.7% in the West. Contract signings jumped 54.4% in the Northeast to a four-month high.

Yun says that as house hunters seek homes away from bigger cites – likely in an effort to avoid the coronavirus – properties that were once an afterthought for potential buyers are now growing in popularity.

end
My goodness, it this is happens, it will be unbelievable: a drop of 35% in GDP in the 2nd quarter.  It will be officially released at month’s end
(Market Watch)

U.S. GDP likely sank a record 35% in the 2nd quarter after coronavirus ravaged the economy

July 29, 2020 at 10:44 a.m. ET

MarketWatch

U.S. GDP set to post biggest decline since World War Two

The U.S. suffered the biggest economic decline in the second quarter since the government began keeping track after World War Two. How much. Try 30% — or more.

Economists polled by MarketWatch estimate gross domestic product — the official scorecard for the U.S. economy — contracted by a record 34.6% annual pace from the start of April to the end of June.

Before the coronavirus pandemic, the largest drop in GDP on record was 10% in 1958. The government’s quarterly GDP figures go back to 1947.

The steepest quarterly drop during the 2007-2009 Great Recession was 8.4%.

Here is what to watch in the second-quarter GDP report when published Thursday morning.

Consumer spending

The loss of tens of millions of jobs and closure of countless businesses during the early stages of the pandemic shook households to the core. The amount of money consumers spent likely fell by a record 35%, according to Wall Street economists.

Consumption represents about 70% of U.S. economic activity. The unprecedented drop in spending is expected to account for the bulk of the decline in GDP.

Spending on services fared the worst. Travel dried up, fewer people went to doctors or dentists for regular care, indoor dining at restaurants was barred and people couldn’t get haircuts, among other things.

Americans also spent less on cars and many other goods, but they bought more household staples such as groceries and paper products to tide them over while working from home.

Business investment

Businesses slashed investment and production in the second quarter when faced with an unfathomable collapse in domestic and foreign demand.

Particularly hard hit were energy producers stung by a huge drop in oil prices as drivers stayed off the road and airline traffic crumbled. Investment in structures such as drilling rigs and equipment like computers and heavy machinery probably shrank about 40% or even more.

Inventories also saw a large drawdown as manufacturers and other companies scaled back production. A decline in the level of inventories also causes GDP to shrink.

Businesses aren’t going to ramp up investment and production until the latest rash of coronavirus cases recedes and global trade recovers from mass disruption.

Weak investment not only hurts the economy now, it will make it harder for growth to accelerate in the future once the virus runs its course.

Government

Washington has committed to spending trillions of dollars to keep the economy from sinking into an even deeper abyss.

Yet it’s quite possible that government spending also declined in the second quarter. Not all the federal aid has been funneled into the economy yet and states and localities have suffered from a huge drop in tax revenue even as their expenses have risen to combat the damage from the virus.

Exports and imports

Chronically high U.S. trade deficits haven’t looked all that different during the pandemic, but it’s mostly a statistical illusion. Imports have plunged — but so have American exports.

In short, world trade has been brought to its knees.

The result will be a further drag on the economy in the second quarter if, as expected, exports fall faster than imports and lead to a somewhat larger deficit. Higher deficits subtract from GDP.

-END-

iii) Important USA Economic Stories

The Senate’s new spending plan  (stimulus bill)

(zerohedge)

With ‘Liability Shield’ Red-Line Looming Over Stimulus Bill, Schumer Claims Dems “Have A Lot Of Leverage & Aren’t Afraid To Use It”

While the to-ing and fro-ing over whether $200 is too little and $600 is too much plays out, the bigger issue separating the two sides of the aisle over the next US aid package is unlikely to find a goldilocks ‘just right’ outcome anytime soon.

As a reminder the Senate GOP plan includes:

  • $1,200 direct payments, CARES redux
  • PPP sequel “to help prevent more layoffs”
  • Federal UI bonus, hints at $200/week
  • Money for schools
  • $ for testing, treatment, vaccines
  • Liability shield for biz/hospitals/entities

Senate Majority Leader Mitch McConnell reaffirmed that his proposed changes to liability law must be included wholesale in the aid package during an interview on CNBC, saying…

…the legislation “will have liability protection in it, so we’re not negotiating with the Democrats over that.”

On the other side, as Bloomberg reports, Senator Dick Durbin, the chamber’s No. 2 Democrat, said he doesn’t see any reason his party would support the plan to shield businesses, schools and other organizations from lawsuits over Covid-19 infections from employees or customers.

“This is an effort by the Republicans to seize the moment and to push through changes in tort law that they have been longing for for decades that have nothing to do with Covid-19.”

House Speaker Nancy Pelosi said that the first day of negotiations did not go well:

It wasn’t a good way for us to begin the discussion.” 

Schumer was less pessimistic, and more bombastic, proclaiming that Democrats have the power and Republicans are desperate:

“I think Republicans are reading the polls. The president is slumping, their Republican Senate candidates are slumping in the polls. They have to show something,”

Adding that:

“We don’t have a majority in the Senate and we can’t pass it alone, but we have a lot of leverage and we’re going to use it,”

But on the bright side, we did not get leaked photos of her standing and pointing across the cabinet desk at members of the Trump admin.

Finally, Trump weighed in, giving himself an out by saying that there are some things in the Republican package that he doesn’t support.

The Senate Republicans’ more modest $1 trillion stimulus package unveiled yesterday remains a far cry from the blockbuster $3.5 trillion proposal that Democrats have proposed and thus, by the end of the farcical theater pretending to be a negotiation, the final sum will likely be closer to the latterthan the former…

McConnell is somewhat cornered by pressure from more fiscally responsible conservatives (of course that is all relative). As Senator Kevin Cramer, a North Dakota Republican warned:

The bigger the price tag gets, the fewer Republicans that will support it.”

And if they do, one wonders what that will do the price of gold?

end

Dow component Boeing posts a massive loss and burns through a huge $5.3 billion..production slows and debt explodes

(zerohedge)

Boeing Posts Massive Loss, Burns $5.3 Billion As Aircraft Production Slows And Debt Explodes

Boeing reported another dismal quarter, helping the company emerge as one of the companies most directly impacted by the global covid pandemic.

For the second quarter Boeing, which said that results are still significantly impacted by Covid-19, reported a 25% drop in revenue to $11.81, badly missing estimates of $12.99 and leading to a $2.4 billion net income loss which translated into a $4.79 loss per share, which while better than the $5.21 per share loss a year ago, was far worse than the $2.54 loss expected…

… as a result of a “slow, uneven” business environment recovery, with defense, government service operations providing stability, but not enough and forcing the company to raise (a lot) of additional debt to bolster liquidity.

As a reminder, Boeing’s best-selling plane, the 737 Max, has been grounded since March 2019 following two fatal crashes. Regulators aren’t expected to clear the planes to fly again before the fall. Separately, the pandemic has driven up financial losses at Boeing’s airline customers and hurt demand for new planes, though Boeing was in crisis even before coronavirus spread around the world.

The company confirmed plans to slow production of its main commercial aircraft as the coronavirus pandemic hurts demand for new planes and its best-selling 737 Max jets remain grounded. Boeing said it would further cut 787 production to just six per month in 2021, the production rate of the 777/777x will be gradually cut to 2 per month in 2021, while it gradually increases manufacturing of its 737 Max to 31 a month by the beginning of 2022, compared with plans to do so next year.

The company is aggressively cutting production as its orderbook has been contracting for the first time in history:

 

Source: @takis2910

Some more details from the quarter:

  • 2Q total commercial planes deliveries 20, down a massive -78% y/y, and below the estimate of 24.40
  • 2Q Commercial Airplanes revenue $1.63 billion, estimate $3 billion
  • 2Q Defense, Space & Security revenue $6.59 billion, estimate $7.02 billion (need moar wars)
  • 2Q Global Services revenue $3.49 billion, estimate $3.29 billion

Even the company’s backlog was hit, dropping 14% Y/Y to just $409BN, a number that continues to shrink by the day.

Some more headlines, which indicate that the company’s buyback – the source of so much joy in previous years and so much pain now – is finally over:

  • Boeing Terminated Share Repurchasing Program
  • Boeing: Est. Will Take 3 Yrs to Return to 2019 Passenger Levels
  • Boeing Says Taking Actions Incl Reducing Employment Levels
  • Boeing: We’ll Complete Production of the Iconic 747 in 2022
  • Boeing Sees 737 Production Rate 31/Month by Beginning of 2022
  • Boeing Global Services Saw $923M Charge on Covid-19 Impacts
  • Boeing: Need to Evaluate Most Efficient Way to Produce the 787

Boeing’s CEO Dave Calhoun in April said air travel demand will likely take two or three years to recover. International demand has been particularly soft, hurting the outlook for Boeing’s widebody commercial planes, like the 787 Dreamliner. The International Air Transport Association, a trade group that represents most of the world’s airlines, on Tuesday said it expects passenger air travel demand globally to recover to 2019 levels in 2024, a year later than it previously forecast.

Boeing has more than 470 planes sitting on the ground that haven’t been delivered to customers, most of them 737 Max jets, according to consulting firm Ascend by Cirium. Meanwhile, more than a third of its active fleet is currently parked.

As CNBC notes, Boeing’s CEO Dave Calhoun in April said air travel demand will likely take two or three years to recover. International demand has been particularly soft, hurting the outlook for Boeing’s widebody commercial planes, like the 787 Dreamliner. The International Air Transport Association, a trade group that represents most of the world’s airlines, on Tuesday said it expects passenger air travel demand globally to recover to 2019 levels in 2024, a year later than it previously forecast.

While the income statement was ugly, the balance sheet was downright scary, with Boeing scrambling to load up on as much cash as it could, adding almost $17 billion in liquidity, this was done at the expense of a surge in debt.

To save costs, Boeing has been slashing overhead and said this spring it aims to cut 10% of its workforce of about 160,000 people. It has also shored up liquidity with a monster $25 billion debt sale in April, Boeing’s largest ever, to help weather the crisis. And while Boeing added $17BN in cash, its debt rose even more, surging by over $20BN in the past quarter! It is only a matter of time before Boeing is downgraded to junk.

While Boeing has a lot of cash on its balance sheet to weather the storm, it has yet to end the 16-month grounding of the 737 Max and the pandemic’s devastation of air travel means the planemaker’s recovery will take years.

Yet despite the dismal results, Boeing’s shares were trading higher on the results, up more than 1% in premarket trading as investors focused on one sliver of positive news: that cash burn wasn’t as bad as they feared. As context, the company burned more than $5 billion in the quarter!

Yet while shares were up 1.3% to $173.02, the stock is trading at roughly half its value from a year ago.

Boeing’s Q2 presentation can be found here.

end
One of my favourite politicians, Judge Louis Gohmert tests positive for the coronavirus
(zerohedge)

Rep. Louie Gohmert Tests Positive For COVID-19 Ahead Of Presidential Flight To Texas

Texas Rep. Louie Gohmert has tested positive for COVID-19, Politico reports.

The Republican Congressman was tested Wednesday morning during a pre-clearing process for Wednesday’s historic anti-trust hearing.

Gohmert also attended yesterday’s hearing with AG Barr, which begs the question: why wasn’t his illness flagged yesterday? As Gohmert was sitting in the presence of not only the AG but many of his colleagues for hours, often shouting questions and commentary back and forth.

Politico noted that the Republican, who represents Texas’s 1st District, has been seen “walking around the Capitol…without a mask.”

In another close call for the president, Gohmert had been scheduled to fly to Texas on Wednesday morning with the president. The eighth-term Republican told CNN last month that he wouldn’t bother wearing a mask because he was being tested regularly.

We hope the Congressman follows through with that promise.

END

Michael Every..on our USA Tech giants

(Michael Every)

Rabobank: It Is Ironic That US “Tech Giants” Don’t Actually Produce Anything

 

By Michael Every of Rabobank

The Means of (No) Production

Today is a Fed decision day. For the markets, the key question is “What more can they realistically do at this stage?” Indicative that there is still more to do is the fact that the virus has not stopped raging across the US, and indeed much of the world, even if it no longer deems major media coverage; that opening-ups are becoming locking-downs; that the most recent initial claims numbers were even more terrible than usual; and that, as things stand at time of writing, Congress is divided over the shape of the latest fiscal response package even though extended unemployment benefits have now stopped and the rental eviction moratorium expires at the end of the month. Moreover, the Fed already took the step of announcing a day before their meeting finishes that seven of their nine emergency lending programs will be extended to the end of the year. (When do they get extended into 2021?)

For a full preview of the upcoming meeting outcome, please see here from Philip Marey, but it seems too early for serious flagging of yield curve control, especially when yields are so low, or of negative rates, which are the final Rubicon for the Fed to cross. There certainly aren’t going to be any reasons for Treasuries to sell off on the meeting outcome, however. On the FX front, and against market chatter –not subscribed to here– that any new Fed dovishness presages the beginning of the end of the USD as a reserve currency, we might see USD on the back foot, which would hardly be exceptional at the moment. Again, let’s reiterate the only reason other major central banks are not having to keep ‘double dipping’ as much as the Fed is doing are: 1) because their fiscal stimuli, like nationalised payrolls, have been in place for months – and yet which runs out in after the summer in the UK case, for example; and 2) because nobody else globally is demanding their currency like the USD.

The Fed today will be thinking about how to maintain as much consumption as possible going forwards and as much stock elevation as required. Might we even get an indication of some new macroeconomic (and maybe socio-economic?) variables that it will track, besides inflation and generic unemployment, so the market can get a grasp of just how long it will be staying on hold?

You will notice one thing missing above for the Fed to worry about: production. Which says a lot about where we stand today and why we stand there. Growing up when I did, and where I did, there was regular dinner-table discussion about ‘the means of production’ and who was and should be controlling them. I suspect many younger market players today could not even tell you which economist coined that key term. They probably have a really good funny picture of a dog or a cat or a heavily-edited ‘catfishing’ selfie though, so there’s that. Of course, the US economy is not coincidentally today all about consumption and not production of goods: “Let other countries *produce* stuff and we will just buy it,” was the ruling economic philosophy in the States from 1945 to 2016, after all. (Not before, and not necessarily in the future though, despite it trying to make a comeback as Trump stumbles.)

On one level this is a story that matters for the Fed, because with no production and lots of needed consumption you also need lots of debt – which we have, but which has logical limits for the household sector at least. It’s also a story for the FX market, because the US consuming and others producing is a weak USD story and also one of global business as usual. In which light, don’t overlook that the US firm Kodak just received a USD765m loan from the government to shift to producing chemicals needed for local production of generic medicines, a step taken to ensure that the US is no longer solely reliant on China and India for such inputs. Yes, that’s the first step on a long, long journey that the next US administration might prefer to talk about and not actually take. However, it also a sign that it’s not global business as usual, and that there are lots of potential USD stings in the tail – most so for those reliant on selling to them.

There is another level on which “the means of production” is relevant today – and that is because US tech giants are being called to testify to Congress against a backdrop of them becoming political footballs in an ever-more polarised society; something their many critics claim they help drive in various ways – have you seen the “Antisocial media” T-shirts?

In such a divided society –where “cultural Marxism” and “trained Marxist” are used as criticism and self-identification—it is ironic that most of these firms don’t actually produce anything, and certainly not in the US: one lets you search for other things; most of the others have no content unless the users provide it or produce it (in which case, mostly from abroad again). There is no “means of production” at all in that sense today. Yet clearly there is still vast power – and so an enormous ding-dong going on over who ‘controls’ them, and to what end.

Calls for moves against monopolies have been around in the US since its creation, flared in particular in the 1850s over land, and Congress passed major anti-trust laws to reshape the US economy in 1890, 1913, 1936, and 1950, as well as in the 1982. However, that strategy has dropped by the wayside since under the combination of a neoliberal view that monopolies can’t happen (ignoring evidence that they do) and that even if they do, which is inherently contradictory, they can be good for consumers. (Thanks to Milton Friedman – the man who argued the more ridiculous a theory’s basis is, the more important it is too.) Of course, now we also have the challenge of Chinese tech giants, which US titans will also lever in DC as reason to leave them untouched.

There is no room to repeat it here in full, but there is a strong set of arguments that monopolies of the means of production (in China, or anywhere) –and of the means of no production—are highly disinflationary and part and parcel of the “lower forever” rates view. High levels of profitability for just some are entirely consistent with far lower ones, and biting deflation, for many, many others.

As such, while we are listening to the Fed talk about what it needs to do, what Congress says it won’t need to do arguably gives us a clue as to what the Fed will ultimately be saying it needs to do when it is next surprised to the downside by structural low inflation.

END
Trump on the warpath against big Tech
(zerohedge)

President Trump Threatens Executive Orders To “Bring Fairness” To Big Tech

With minutes to go until the historic hearing of the four major tech CEOs in front of Congress, President Trump has tweeted his thoughts:

If Congress doesn’t bring fairness to Big Tech, which they should have done years ago, I will do it myself with Executive Orders.

Trump continued:

In Washington, it has been ALL TALK and NO ACTION for years, and the people of our Country are sick and tired of it!

This comes after YouTube, Facebook, and Twitter all banned a video daring to suggest that hydroxychloroquine could be effective as a treatment against COVID-19 – which some among the outrage mod exclaimed as “really dangerous stuff.”

This also come after years of stealth and not so stealth suppression of conservative voices.

END

iv) Swamp commentaries)

After Ending Police Contract, Minneapolis Schools Quietly Post Job Listings For Security Guards

Authored by GQ Pan via The Epoch Times,

The public school district in Minneapolisafter cutting their ties with the city’s police in early June, has quietly sought to replace contracted school resource officers (SROs) with privately hired security guards – a move that enraged the teachers union, which wants no policing on campus at all.

In the wake of the death of George Floyd in the custody of Minneapolis police officers, the Minneapolis Public Schools (MPS) board of education voted unanimously to terminate its contract with the Minneapolis Police Department, saying it “cannot continue to be in partnership with an organization that has the culture of violence and racism.” As the new school year approaches, however, the MPS found itself in need of a security force to keep campuses safe.

According to an online job posting, the MPS plans to pay between $65,695 to $85,790 for 11 “public safety support specialists (PSSS).” The PSSS won’t be police officers, but are required to have law enforcement degrees and experience. Their list of responsibilities include: breaking up fights, event security, and providing “a bridge between in-school intervention and law enforcement.”

The MPS hiring effort soon came to the notice of Minneapolis Federation of Teachers (MFT), reported local newspaper City Pages. The MFT, which played an active role in prompting the district to cut ties with the police, was furious that it had not been consulted about the plan.

“When we said we didn’t want any more SROs, any more police officers in our buildings, we did not mean, ‘hire a bunch of private security officers and put them in our buildings,’” MFT President Greta Callahan told City Pages.

More than 100 Minneapolis teachers and families participated in a “No Cops In Our Schools” rally on July 19 outside the district headquarters to protest against what they called “rent-a-cops.”

“Unfortunately, because we used an existing job description to allow us to meet our August 18 deadline, the job description did mention a background in law enforcement,” the district explained in a statement, adding that most of applicants they had interviewed don’t have that experience.

“The most important experience required for the position is understanding and making authentic connections with students so that students do not feel another adult is being brought in to control them,” the district said.

The deaths of George Floyd has caused many school districts to consider stop contracting with local police departments or dismantling their own campus police forces. Protesters in several major cities, notably Chicago, Denver, and Portland, have demanded the removal of resource officers from schools.

END

Connecticut Man Charged With Decapitating His Landlord With A Samurai Sword

Jerry David Thompson was arraigned on Tuesday in Superior Court in Hartford, charged with “using a samurai sword to decapitate his landlord” this weekend. He was ordered to be held in lieu of $2 million in bail.

Thompson is refusing to speak with police and is claiming he is a sovereign citizen, according to the Hartford Courant. He has also reportedly refused to speak with a public defender and is not being represented by an attorney. His case was continued to August 18 by presiding Judge Ann Lynch.

 

Thompson

Thompson was identified as a suspect by friends of victim Victor King, who had rented him a room. The two were said to have had a dispute about Thompson not paying his rent when Thompson threatened King with the sword.

King went to Hartford Police on Saturday about the threats, one day before he was killed. He told police Thompson had been “waving the sword” at him.

On Sunday, King’s friends called the police when they couldn’t reach him. Sunday afternoon, police forced their way into King’s home, only to find “a lot of blood and King’s badly slashed body covered in bedding.”

Thompson was quickly tracked by police to the city’s North End, where he was apprehended and brought to the police station. Once in custody, he refused to say anything. He wrote on a sheet of paper “paper in glove compart in Jeep is all you need.”

The paperwork suggested that Thompson viewed himself as a sovereign citizen and not subject to the law.

 

King

King was a retiree who previously worked for Travelers and was “an accomplished bridge player”. “He was very good at it. Very good at teaching others to play it. Just a kind and gentle person whose first love was bridge,” the victim’s cousin said.

Paul Linxwiler, executive editor of the Bridge Bulletin, called King a Grand Life Master, “which is our highest rank,” according to the NY Post. To get to that rank, “you have to play a lot…and you have to be good, too,” he said. “He was known as a top player from New England.”

Thompson has had previous convictions for assault and robbery.

v) King report/Courtesy of Chris Powell of GATA which includes the major swamp stories.

St. Louis Fed Economic Research: Making Sense of the National Debt     November 2019

Conclusion: The national debt is high by historical standards—and rising. People often assume that governments must pay off their debts in the same way that individuals do. How­ever, there are important differences: Governments (and their economies) do not retire, and governments do not die (or don’t intend to). As long as their debt payments remain sustainable, governments can finance their debt indefinitely. And if a government prints money to solve its debt problem, history warns that hyperinflation and financial ruin will likely result. While debt in itself is not a bad thing, it can become dangerous if it becomes unsustainable.  [US debt is far worse now than it was in November 2019!]

https://research.stlouisfed.org/publications/page1-econ/2019/11/01/making-sense-of-the-national-debt

From Tuesday’s King Report: Anyone that’s been around the block a few times with gold knows that at some point ‘they’ will stage a concerted effort to drive gold lower…

December gold hit $2000 at 21:19 ET on Monday.  It then retreated and traded sideways until 22:50 ET.  Then, someone slammed gold down to 1955 in 20 minutes.  This is obvious ‘impact trading’.  Gold then traded sideways for over 4 hours.  At 3:27 ET, another attack on gold commenced.  December gold finally bottomed at 1927.50 at 3:51 ET.  AU rebounded sharply after Goldman hiked its target price to 2300.

The duo concerted attacks on gold suggest that someone with stature has transitioned from being alarmed about gold to being afraid of gold.

Hamptons Concert [2k people showed up] Turns into Lightning Rod after Cuomo Vows Probe

A charity concert featuring Goldman Sachs Group Inc.’s chief and the Chainsmokers has sparked a state probe… Cuomo said…“We have no tolerance for the illegal & reckless endangerment of public…”… https://www.bloombergquint.com/business/hamptons-concert-with-goldman-ceo-chainsmokers-faces-n-y-probe

@AlexBerenson: If current trends hold, the number of people under 35 murdered in the US this year will RISE by more than the TOTAL number of people under 35 who die of #Covid.  Lockdowns kill.

Poll: Voters prefer narrow aid for COVID, not sweeping economic restructuring45% want to ‘spend only to helping those directly impacted by shutdown and medical research,’ and 28% want to ‘launch large new projects to restructure the economy.’ Read herehttps://t.co/7YNfBLWfdT

Twitter Removes Video by Frontline Doctor on Success of HCQ on COVID Patients After Trump Retweets Her… – Twitter Is Removing Info That Saves Lives! – The fake news media… all waged a war on Hydroxychloroquine just because Trump touted the anti-malaria drug as an effective treatment for COVID-19.  Dr. Stella Immanuel said on Monday that she has personally treated over 350 patients with COVID-19 with Hydroxychloroquine, Zinc, and Zithromax and they have all recovered…The doctor also disclosed that she put herself and her staff on Hydroxychloroquine as a preventative

https://www.thegatewaypundit.com/2020/07/twitter-removes-video-frontline-doctor-success-hcq-covid-patients-trump-retweets-think-twitter-removing-videos-saving-lives/

stella_emmanuel MD @stellae78000229: I refuse to be chained by fake science. I have successfully treated over 250 COVID patients with HCQ, zpack and zinc. No deaths. All these double blinded studies sponsored by big Phama is fake science.

Tens of billions of dollars in vaccine sales are threatened by HCQ.  Don’t forget, in 2005, Fauci touted HCQ as a miracle drug for treating Coronaviruses.  Yesterday, he ran to Good Morning, America to downplay HCQ’s effectiveness.  Dr. Stella Emmanuel challenged Fauci to take a urine test to see if he is taking HCQ as a prophylactic.  She also said hydroxychloroquine should be an over the counter medicine.

Dr. David Samadi @drdavidsamadi: Looks like all social media sites are removing the video of the doctors on Capitol Hill yesterday giving the very informative press conference.  Why can’t America have a second opinion?

@DeAnna4Congress: Social media is banning doctors because they don’t agree with the medical advice they’re giving.  Yes, we’re now at that point of censorship.

@JamesTodaroMD (spoke at frontline doctor’s summit on Monday): Wow. It appears Squarespace took down our website todayhttp://americasfrontlinedoctors.com.  We are reaching new levels of censorship.

The Key to Defeating COVID-19 Already Exists. We Need to Start Using It | Opinion

Harvey A. Rische, MD, PHD, Professor of Epidemiology, Yale School of Public Health

    In the midst of a crisis, I am fighting for a treatment that the data fully support but which, for reasons having nothing to do with a correct understanding of the science, has been pushed to the sidelines. As a result, tens of thousands of patients with COVID-19 are dying unnecessarily. Fortunately, the situation can be reversed easily and quickly.

    I am referring, of course, to the medication hydroxychloroquine. When this inexpensive oral medication is given very early in the course of illness, before the virus has had time to multiply beyond control, it has shown to be highly effective, especially when given in combination with the antibiotics azithromycin or doxycycline and the nutritional supplement zinc

https://www.newsweek.com/key-defeating-covid-19-already-exists-we-need-start-using-it-opinion-1519535

Trump retweet: @biobiobiobior: 62 studies confirm the effectiveness of hydroxychloroquine.  Deafening silence of the Mainstream Medias, unacceptable mediatic lockdown Yale epidemiology professor Dr. Harvey Risch: “Hydroxychloroquine could save up to 100,000 lives if used for COVID-19!”

Trump retweet: @robbystarbuck: This press conference of doctors had 14 million views on Facebook today. FB took it down shortly after a NYTimes reporter complained. The FB comms person who replied to the NYTImes reporter confirming it was removed used to work for @SenatorBoxer & @dccc.

Sweden: the One Chart That Matters

While the Covid-19 epidemic continues to drag on in the United States, it’s largely over in Sweden where fatalities have dropped to no more than 2 deaths per day for the last weekSweden has been harshly criticized in the media for not imposing draconian lockdowns like the United States and the other European countries. Instead, Sweden implemented a policy that was both conventional and sensible. They recommended that people maintain a safe distance between each other… banned gatherings of 50 people or more. They also asked their elderly citizens to isolate themselves and to avoid interacting with other people as much as possible. Other than that, Swedes were encouraged to work, exercise and get on with their lives as they would normally even though the world was still in the throes of a global pandemic.

https://www.unz.com/mwhitney/sweden-the-one-chart-that-matters/

Barr’s appearance at the House Judiciary Committee should upset any fair-minded citizen.  The US is near banana republic status.  The hearing was an unmitigated disgrace and travesty.  If the GOP had done this to Eric Holder or Janet Reno, the MSM would have gone berserk.  [Yet another reason to own gold!]

Ex-FBI agent & Navy Seal JGilliam_SEAL: The democrats’ behavior in today’s #BarrHearing is all the evidence needed to see we are heading towards an armed civil war in this nation.

@SteveGuest: AG Barr: “What makes me concerned for the country…the leaders of one of our great two political parties, the Democratic Party, are not coming out and condemning mob violence and the attack on federal courts.”  [Barr added: “Could we hear something like that?”]

@TrumpWarRoom: Attorney General Barr on the violence in Portland: “What unfolds nightly around the courthouse cannot reasonably be called protest. It is, by any objective measure, an assault on the government of the United States….Why can’t we just say violence against federal courts has to stop?”

‘Is That Ok?’: Barr Slams Democrats Downplaying Rioters Using ‘Projectiles That Have Penetrated Marshals To The Bone’

https://dailycaller.com/2020/07/28/william-barr-slams-democrats-downplaying-rioters-injuring-marshals/

GOP @RepAndyBiggsAZ: House Judiciary Democrats are setting up “gotcha” questions for AG Barr, then cutting him off before he can give a complete answer.  This hearing is nothing short of political theater, & the American people should be outraged that Democrats aren’t concerned with solving issues.

@bdomenech: “This is a hearing; I thought I was the one who was supposed to be heard?” – Bill Barr

@MillerStream: Every time Barr speaks the Democrats shout at him or bang the gavel. This is a worthless spectacle

@ByronYork: Democratic Rep. Greg Stanton speaking to Attorney General Bill Barr, in a line that sums up today’s Judiciary Committee appearance‘You’ll have a chance to comment after your testimony is over today.’

@JudiciaryGOP: First, House Democrats cut off our video showing violent protests in liberal cities.  Next, they won’t let Attorney General Barr finish answering questions.  Now, they won’t even let the Attorney General use the restroom? Where does it end, @RepJerryNadler?

@henryrodgersdc: Barr: “Could we take a 5-minute break, Mr. Chairman?”  Nadler: “NO!”  Barr: “I waited an hour for you this morning. (Due to car crash) I haven’t had lunch. I’d like to take a 5-minute break.”  Nadler: “We are almost done.” Barr: “You’re a real class act.” [After realizing how petty and small he appeared to the world, Nadler finally relented. Video at link in case you think we’re fibbing]

https://twitter.com/M2Madness/status/1288198167335493638

@PARISDENNARD: Jerry Nadler said that it’s not permissible for Republican members to remove their masks to drink a beverage forgetting that the moment he sat down he did that very thing drinking from a bottle of water.

@ByronYork: Nadler has just ended hearing. One takeaway: House Judiciary Democrats are deeply invested in position that federal law enforcement in Portland has attacked ‘peaceful’ protesters. Comes even as some pro-Biden voices express concern about riots, violence hurting Democratic cause.

Over 100 Police Agencies Pull Out Of Agreements to Guard DNC Convention

“Since the Milwaukee order was issued, more than 100 law enforcement agencies in Wisconsin and across the country decided against coming to Milwaukee, Morales told WTMJ-TV on Tuesday,” the Associated Press reported. “They were concerned with directives placed on the police department, including not allowing tear gas or pepper spray, he said.”…

https://www.dailywire.com/news/breaking-over-100-police-agencies-pull-out-of-agreements-to-guard-dnc-convention

@JerryDunleavy: The @AP snapped a photo of @JoeBiden’s notes today: “Kamala Harris— Do Not Hold Grudges, Campaigned With Me And Jill, Talented, Great Help To Campaign, Great Respect For Her.” The same day @Politico published then retracted a piece on Biden naming her VP.

https://apnews.com/d3fc8b88cde56bac9f1e7b5e494fb019/gallery/4ad2baf7b6064f07a12dccc89e52ace4

Philip Smith, president of the National African American Gun Owners’ Association, said his organization’s annual membership has increased by much as 2,000 new members per day — a figure he used to see annually. His organization has grown to more than 30,000 members this year and has an online following of nearly 90,000 people…  https://www.politico.com/news/2020/07/26/black-americans-gun-owners-380162

Well that is all for today

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